Textron Earnings: SURGES Beyond Analyst Estimates
S&P 500 (NYSE:SPY) component Textron Inc (NYSE:TXT) reported net income above Wall Street’s expectations for the second quarter. Textron is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services.
Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?
Textron Inc Earnings Cheat Sheet
Results: Net income for Textron Inc rose to $172 million (58 cents per share) vs. $90 million (29 cents per share) in the same quarter a year earlier. This marks a rise of 91.1% from the year-earlier quarter.
Revenue: Rose 10% to $3 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Textron Inc beat the mean analyst estimate of 44 cents per share. Analysts were expecting revenue of $2.99 billion.
Quoting Management: “The payoff from investing in new products and services is reflected in our double digit revenue growth during the quarter and our focus on operational execution is driving solid results,” said Textron Chairman and CEO Scott C. Donnelly. He continued, “We are also very pleased with recent significant program wins, including the Canadian Tactical Armored Patrol Vehicle, the U.S. Navy’s Ship-to-Shore Connector, upgrades to the U.S. Army’s Shadow TUAS, and an agreement with NetJets to provide up to 150 Citation Latitudes for their fleet, all of which help contribute to the positive outlook we have for our businesses.”
The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 5 cents in the first quarter, by 15 cents in the fourth quarter of the last fiscal year, and by 14 cents in the third quarter of the last fiscal year.
Revenue has increased for four consecutive quarters. Revenue increased 15.2% to $2.86 billion in the first quarter. The figure rose 4.1% in the fourth quarter of the last fiscal year from the year earlier and climbed 13.5% in the third quarter of the last fiscal year from the year-ago quarter.
Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 48 cents a share to 49 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $1.95 a share to $1.94 over the last sixty days.
Competitors to Watch: The Boeing Company, General Electric Company, Embraer SA, 3M Company, Spirit AeroSystems Hldgs., Inc., Honeywell Intl. Inc., Tyco International Ltd., Carlisle Companies, Inc., United Technologies Corp., and Siemens AG.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)