Yahoo Finance Textron's (TXT) Q1 Earnings Lag Estimates, Revenues Rise Y/Y
Textron Inc. TXT reported first-quarter 2024 adjusted earnings of $1.20 per share, which lagged the Zacks Consensus Estimate of $1.28 by 6.3%. However, the bottom line improved 14.3% from the year-ago quarter’s figure of $1.05 per share.
The company reported GAAP earnings of $1.03 per share, up from 92 cents registered in the first quarter of 2023.
Textron Inc. Price, Consensus and EPS Surprise
Textron Inc. price-consensus-eps-surprise-chart | Textron Inc. Quote
Revenues
TXT reported total revenues of $3.14 billion, which missed the Zacks Consensus Estimate of $3.34 billion by 6.1%. However, the reported figure increased 3.7% from the year-ago quarter’s level of $3.02 billion.
Manufacturing revenues improved 3.6% year over year to $3.12 billion.
Segmental Performance
Textron Aviation: Revenues from this segment increased 3.4% year over year to $1.19 billion. The rise was primarily due to higher pricing.
The segment generated an operating profit of $143 million in the quarter under review compared with $125 million in the year-ago period. This improvement can be attributed to favorable pricing, net of inflation.
Textron Aviation delivered 36 jets compared with 35 in the year-ago quarter. It also delivered 20 commercial turboprops, down from 34 in the first quarter of 2023.
The segment’s order backlog at the end of the quarter totaled $7.3 billion.
Bell: Revenues from this segment amounted to $727 million, up 17.1% from the year-ago quarter’s reported number. This was driven by higher military revenues, primarily related to the FLRAA program.
The segment’s profit improved a solid 33.3% to $80 million, driven by the favorable impact of performance.
Bell delivered 18 commercial helicopters in the quarter, down from 22 last year. Its order backlog at the end of the quarter totaled $4.5 billion.
Textron Systems: This segment’s revenues came in flat year over year at $306 million.
Segmental profits were $38 million, up by 11.8% from the previous year’s reported figure.
Textron Systems’ backlog at the end of the first quarter totaled $1.8 billion.
Industrial: Revenues from this segment declined 4.3% to $892 million, driven by lower volumes and mix, principally in the Specialized Vehicles product line.
Moreover, the segment’s profit totaled $29 million compared with $41 million in the prior-year quarter. The decline can be attributed to lower volumes and mix at Specialized Vehicles.
Textron eAviation: Revenues from the segment totaled $7 million, up 75% year over year. Meanwhile, it reported a loss of $18 million in the first quarter, wider than a reported loss of $9 million in the prior-year period.
Finance: This segment’s revenues improved 25% to $15 million. Its profit totaled $18 million in the first quarter compared with $8 million in the year-ago period.
Financials
As of Mar 31, 2024, cash and cash equivalents totaled $1.39 billion compared with $2.12 billion as of Dec 31, 2023.
Cash outflow from operating activities amounted to $30 million as of Mar 31, 2024, against cashflow of $153 million in the year-ago period.
Capital expenditures amounted to $66 million in the first quarter of 2024 compared with $62 million in the prior-year period.
The long-term debt totaled $2.82 billion as of Mar 31, 2024 compared with $3.17 billion as of Dec 31, 2023.
Guidance
Textron kept its guidance for 2024 unchanged. The company still expects to generate adjusted earnings per share in the range of $6.20-$6.40. The Zacks Consensus Estimate for TXT’s 2024 earnings is pegged at $6.27 per share, which lies below the midpoint of the company’s guided range.
Zacks Rank
Textron currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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