Earnings Review and Free Research Report: Textron Reported Better than Expected Revenue and Earnings Results
Research Desk Line-up: Tel-Instrument Electronics Post Earnings Coverage
LONDON, UK / ACCESSWIRE / July 21, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Textron Inc. (NYSE: TXT), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=TXT, following the Company's reporting of its financial results on July 18, 2017, for the second quarter fiscal 2017. The maker of Cessna small planes and Bell helicopters reported a 2.6% growth in revenue and reiterated its earnings expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Aerospace/Defense - Major Diversified industry. Pro-TD has currently selected Tel-Instrument Electronics Corp. (NYSE MKT: TIK) for due-diligence and potential coverage as the Company reported on July 17, 2017, its financial results for Q4 and year which ended on March 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on Tel-Instrument Electronics when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on TXT; also brushing on TIK. With the links below you can directly download the report of your stock of interest-free of charge at:
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Earnings Reviewed
For the three months ended July 01, 2017, Textron reported revenues of $3.60 billion, up 2.6% compared to revenue of $3.51 billion from Q2 2016. The Company's revenue numbers surpassed analysts' expectations of $3.59 billion.
For Q2 2017, Textron's segment profit totaled $295 million, down $33 million compared to segment's profit of $328 million in Q2 2016.
For Q2 2017 Textron's income from continuing operations was $153 million, or $0.57 per share, compared to net income of $177 million, or $0.65 per share, for Q2 2016. The Company recorded $13 million of pre-tax special charges, or $0.03 per share, after-tax for the reported quarter. On an adjusted basis, Textron reported adjusted income from continuing operations of $0.60 per share, surpassing Wall Street's expectations of $0.55 per share.
Segment Results
During Q2 2017, revenues at Textron Aviation totaled $1.17 billion, down $25 million compared to revenue of $1.20 billion in Q2 2016; the decline was attributed to lower military and commercial turboprop volume, but this was partially offset by higher jet volume. Textron Aviation recorded a segment profit of $54 million in Q2 2017 compared to $81 million in Q2 2016, primarily due to lower volume and mix. Textron Aviation backlog at the end of the reported quarter was $1.0 billion, approximately flat from the end of Q1 2017.
Textron's Bell segment's revenue for Q2 2017 was $825 million, up $2.6% compared to revenue of $804 million in Q2 2016. Bell's segment profit surged 38.3% to $112 million compared to the segment's profit of $81 million in the year ago same period. Surge in profit for this segment was primarily due to improved performance. Bell backlog at the end Q2 2017 was $5.4 billion, down $234 million on a sequential basis.
For Q2 2017, revenues at Textron Systems decreased $10 million to $477 million compared to revenue of $487 million in Q2 2016, primarily due to lower volumes in the Weapons and Sensors and Unmanned Systems product lines partially offset by higher volumes at Marine and Land Systems. In the reported quarter, the segment profit totaled $42 million, down 30% compared to revenue of $60 million in the year earlier period, due to lower volume and mix. Textron Systems' backlog at the end of the reported quarter was $1.6 billion, down $170 million from the previous quarter.
Textron's Industrial segment revenues totaled $1.11 billion, reflecting a gain of $109 million, or 11%, compared to revenue of $1.0 billion in Q2 2016, largely due to the impact of the Arctic Cat's acquisition. The segment's profit dropped $17 million to $82 million, due to an operating loss at Arctic Cat and unfavorable pricing and inflation.
Cash Flow
For Q2 2017, Textron's net cash provided by operating activities of continuing operations of the manufacturing group totaled $413 million compared to $107 million in Q2 2016. The Company's manufacturing cash flow before pension contributions totaled $341 million compared to a use of cash of $26 million during the prior year's same quarter.
Outlook
Textron reiterated its full-year 2017 GAAP earnings per share guidance from continuing operations of $2.22 to $2.45, or $2.40 to $2.60 on an adjusted basis. The Company also confirmed its net cash provided by operating activities guidance of continuing operations of the manufacturing group to be between $1.05 billion to $1.15 billion and manufacturing cash flow before pension contributions to be in the range of $650 million to $750 million.
Stock Performance
On Thursday, July 20, 2017, the stock closed the trading session at $48.63, slightly falling 0.08% from its previous closing price of $48.67. A total volume of 2.16 million shares has exchanged hands, which was higher than the 3-month average volume of 1.48 million shares. Textron's stock price surged 3.73% in the last one month, 5.92% in the past three months, and 23.83% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 0.14%. The stock is trading at a PE ratio of 16.72 and has a dividend yield of 0.16%. The stock currently has a market cap of $13.15 billion.
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