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Textron (TXT) Q2 Earnings Beat Estimates, Revenues Drop Y/Y
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Textron Inc. (TXT - Free Report) reported second-quarter 2022 earnings of $1.00 per share, which surpassed the Zacks Consensus Estimate of 88 cents by 13.6%. The bottom line also improved 23.5% from the year-ago quarter’s figure.
Revenues
Total revenues came in at $3,154 million, which missed the Zacks Consensus Estimate of $3,232 million by 2.4%. The reported figure also decreased 1.2% from the year-ago quarter’s $3,191 million.
Manufacturing revenues declined 1.2% in the second quarter to $3,140 million, while revenues at the Finance division improved 16.7% to $14 million.
Textron Aviation: In the quarter under review, revenues in this segment rose 10.6% year over year to $1,284 million. The increase was primarily due to higher aircraft and aftermarket volumes.
The company delivered 48 jets, up from 44 in the year-ago quarter. It also delivered 35 commercial turboprops, up from 33 in the second quarter of 2021.
The segment generated an operating profit of $155 million in the quarter compared with the $96 million earned in the year-ago quarter due to a higher volume as well as a favorable pricing impact.
The order backlog at the end of the quarter was $5.8 billion.
Bell: Revenues from this segment declined 22.9% to $687 million, primarily due to lower military as well as commercial revenues.
The segment delivered 34 commercial helicopters in the quarter, down from 47 last year.
The segment’s profit was down 42.7% to $63 million due to lower volumes and mix. Bell’s order backlog at the end of the quarter was $5.3 billion, up sequentially from $4.8 billion.
Textron Systems: Revenues in this segment came in at $293 million, down 12% from the year-ago period. The deterioration can be attributed to lower volumes, which included the impact of the U.S. Army’s withdrawal from Afghanistan on the segment's fee-for-service and aircraft support contracts.
Segmental profits declined 14.3% year over year to $63 million in the second quarter due to a lower volume and a mix.
Textron Systems’ backlog at the end of the second quarter was $2.1 billion. Industrial: Revenues in this segment improved 9.7% to $871 million due to a favorable pricing impact as well as higher volume and mix, primarily on the Specialized Vehicles product line.
Moreover, the segment’s profit was $41 million compared with $32 million in the previous year quarter. The improvement can be attributed to a higher volume and a mix.
Finance: Revenues in this segment increased to $14 million from $12 million in the year-ago quarter. The profit came in at $10 million in the second quarter compared with $3 million in the year-ago period.
Financials
As of Jul 2, 2022, cash and cash equivalents totaled $1,764 million compared with $1,922 million as of Jan 1, 2022.
Cash flow from operating activities amounted to $589 million as of Jul 2, 2022 compared with $679 million in the year-ago period.
Capital expenditures were $66 million during the second quarter of 2022 compared with $75 million recorded in the second quarter of 2021.
The long-term debt was $3,177 million as of Jul 2, 2022 compared with $3,179 million as of Jan 1, 2022.
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2022 earnings of $6.32 per share, which surpassed the Zacks Consensus Estimate of $6.29 by 0.5%. The bottom line however declined 1.6% year over year.
The company’s net sales amounted to $15.45 billion, which missed the Zacks Consensus Estimate of $16.16 billion by 4.4%. The top line also declined 9.3% from $17.03 billion reported in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 30 cents by 10%.
The company’s net sales totaled $393 million, which beat the Zacks Consensus Estimate of $383 million by 2.6%. Moreover, the top line witnessed an improvement of 22.7% from the year-ago quarter’s $320.3 million.
AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2022 adjusted earnings of 72 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 5.9%. Earnings recorded a solid surge of 53.2% from the year-ago quarter.
In the quarter under review, AAR generated net sales worth $476.1 million. The reported figure surpassed the Zacks Consensus Estimate of $468 million by 1.7% and also improved 8.8% from $437.6 million recorded in the year-ago quarter.
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Textron (TXT) Q2 Earnings Beat Estimates, Revenues Drop Y/Y
Textron Inc. (TXT - Free Report) reported second-quarter 2022 earnings of $1.00 per share, which surpassed the Zacks Consensus Estimate of 88 cents by 13.6%. The bottom line also improved 23.5% from the year-ago quarter’s figure.
Revenues
Total revenues came in at $3,154 million, which missed the Zacks Consensus Estimate of $3,232 million by 2.4%. The reported figure also decreased 1.2% from the year-ago quarter’s $3,191 million.
Manufacturing revenues declined 1.2% in the second quarter to $3,140 million, while revenues at the Finance division improved 16.7% to $14 million.
Textron Inc. Price, Consensus and EPS Surprise
Textron Inc. price-consensus-eps-surprise-chart | Textron Inc. Quote
Segmental Performance
Textron Aviation: In the quarter under review, revenues in this segment rose 10.6% year over year to $1,284 million. The increase was primarily due to higher aircraft and aftermarket volumes.
The company delivered 48 jets, up from 44 in the year-ago quarter. It also delivered 35 commercial turboprops, up from 33 in the second quarter of 2021.
The segment generated an operating profit of $155 million in the quarter compared with the $96 million earned in the year-ago quarter due to a higher volume as well as a favorable pricing impact.
The order backlog at the end of the quarter was $5.8 billion.
Bell: Revenues from this segment declined 22.9% to $687 million, primarily due to lower military as well as commercial revenues.
The segment delivered 34 commercial helicopters in the quarter, down from 47 last year.
The segment’s profit was down 42.7% to $63 million due to lower volumes and mix. Bell’s order backlog at the end of the quarter was $5.3 billion, up sequentially from $4.8 billion.
Textron Systems: Revenues in this segment came in at $293 million, down 12% from the year-ago period. The deterioration can be attributed to lower volumes, which included the impact of the U.S. Army’s withdrawal from Afghanistan on the segment's fee-for-service and aircraft support contracts.
Segmental profits declined 14.3% year over year to $63 million in the second quarter due to a lower volume and a mix.
Textron Systems’ backlog at the end of the second quarter was $2.1 billion.
Industrial: Revenues in this segment improved 9.7% to $871 million due to a favorable pricing impact as well as higher volume and mix, primarily on the Specialized Vehicles product line.
Moreover, the segment’s profit was $41 million compared with $32 million in the previous year quarter. The improvement can be attributed to a higher volume and a mix.
Finance: Revenues in this segment increased to $14 million from $12 million in the year-ago quarter. The profit came in at $10 million in the second quarter compared with $3 million in the year-ago period.
Financials
As of Jul 2, 2022, cash and cash equivalents totaled $1,764 million compared with $1,922 million as of Jan 1, 2022.
Cash flow from operating activities amounted to $589 million as of Jul 2, 2022 compared with $679 million in the year-ago period.
Capital expenditures were $66 million during the second quarter of 2022 compared with $75 million recorded in the second quarter of 2021.
The long-term debt was $3,177 million as of Jul 2, 2022 compared with $3,179 million as of Jan 1, 2022.
Zacks Rank
Textron currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2022 earnings of $6.32 per share, which surpassed the Zacks Consensus Estimate of $6.29 by 0.5%. The bottom line however declined 1.6% year over year.
The company’s net sales amounted to $15.45 billion, which missed the Zacks Consensus Estimate of $16.16 billion by 4.4%. The top line also declined 9.3% from $17.03 billion reported in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 30 cents by 10%.
The company’s net sales totaled $393 million, which beat the Zacks Consensus Estimate of $383 million by 2.6%. Moreover, the top line witnessed an improvement of 22.7% from the year-ago quarter’s $320.3 million.
AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2022 adjusted earnings of 72 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 5.9%. Earnings recorded a solid surge of 53.2% from the year-ago quarter.
In the quarter under review, AAR generated net sales worth $476.1 million. The reported figure surpassed the Zacks Consensus Estimate of $468 million by 1.7% and also improved 8.8% from $437.6 million recorded in the year-ago quarter.