We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Textron Inc. (TXT - Free Report) reported second-quarter 2024 adjusted earnings of $1.54 per share, which surpassed the Zacks Consensus Estimate of $1.49 by 3.4%. The bottom line also improved 5.5% from the year-ago quarter’s figure of $1.46 per share.
The company reported GAAP earnings of $1.35 per share, up from $1.30 per share registered in the second quarter of 2023.
Revenues
TXT reported total revenues of $3.53 billion, which missed the Zacks Consensus Estimate of $3.55 billion by 0.6%. However, the reported figure increased 3% from the year-ago quarter’s level of $3.42 billion.
Manufacturing revenues improved 3.2% year over year to $3.52 billion.
Textron Aviation: Revenues from this segment increased 8.3% year over year to $1.48 billion. The rise was primarily driven by higher pricing, as well as the higher volume and mix.
The segment generated an operating profit of $195 million in the quarter under review compared with $171 million in the year-ago period. This improvement can be attributed to the higher volume and mix and a favorable pricing impact, net of inflation.
Textron Aviation delivered 42 jets compared with 44 in the year-ago quarter. It also delivered 44 commercial turboprops, up from 37 in the second quarter of 2023.
The segment’s order backlog at the end of the quarter totaled $7.5 billion.
Bell: Revenues from this segment amounted to $794 million, up 13.3% 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 26.2% to $82 million, driven by the favorable impact of performance.
Bell delivered 32 commercial helicopters in the quarter, down from 35 last year. Its order backlog at the end of the quarter totaled $4.2 billion.
Textron Systems: This segment’s revenues came in at $323 million, up 5.6% from the year-ago quarter’s reported number, driven by higher volumes.
The segment’s profits were $35 million, down by 5.4% from the previous year’s reported figure.
Textron Systems’ backlog at the end of the second quarter totaled $1.7 billion.
Industrial: Revenues from this segment declined 10.9% to $914 million due to lower volumes and mix.
Moreover, the segment’s profit totaled $42 million compared with $79 million in the prior-year quarter. The decline can be attributed to lower volumes and mix.
Textron eAviation: Revenues from the segment totaled $9 million, down 18.2% year over year. Meanwhile, it reported a loss of $18 million in the second quarter, wider than a reported loss of $12 million in the prior-year period.
Finance: This segment’s revenues declined 33.3% to $12 million. Its profit totaled $7 million in the second quarter compared with $12 million in the year-ago period.
Financials
As of Jun 29, 2024, cash and cash equivalents totaled $1.35 billion compared with $2.12 billion as of Dec 30, 2023.
Cash flow from operating activities amounted to $353 million as of Jun 29, 2024 compared with the cash flow of $467 million in the year-ago period.
Capital expenditures amounted to $74 million in the second quarter of 2024 compared with $83 million in the prior-year period.
The long-term debt totaled $2.88 billion as of Jun 29, 2024 compared with $3.17 billion as of Dec 30, 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, lower than the midpoint of the company’s guided range.
General Dynamics Corporation (GD - Free Report) is set to report second-quarter 2024 results on Jul 24 before market open. The Zacks Consensus Estimate for GD’s second-quarter earnings is pegged at $3.31 per share, which indicates an improvement of 22.6% from the prior year quarter’s reported figure.
The Zacks Consensus Estimate for General Dynamics’ second-quarter sales is pegged at $11.48 billion, which implies an improvement of 13.1% from the prior-year quarter’s reported figure.
Northrop Grumman (NOC - Free Report) is scheduled to report second-quarter 2024 results on Jul 25 before market open. The Zacks Consensus Estimate for Northrop Grumman’s second-quarter earnings is pegged at $5.95 per share, which calls for an increase of 11.4% from the prior year quarter’s reported figure.
The Zacks Consensus Estimate for NOC’s second-quarter sales is pegged at $10.07 billion, which implies an improvement of 5.2% from the prior-year quarter’s reported figure.
L3Harris Technologies (LHX - Free Report) is slated to report second-quarter 2024 results on Jul 25 after market close. The Zacks Consensus Estimate for L3Harris Technologies’ second-quarter earnings is pegged at $3.18 per share, which suggests growth of 7.1% from the prior year quarter’s reported figure.
The Zacks Consensus Estimate for LHX’s second-quarter sales is pegged at $5.29 billion, which indicates an improvement of 12.8% from the prior-year quarter’s reported figure.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Textron's (TXT) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Textron Inc. (TXT - Free Report) reported second-quarter 2024 adjusted earnings of $1.54 per share, which surpassed the Zacks Consensus Estimate of $1.49 by 3.4%. The bottom line also improved 5.5% from the year-ago quarter’s figure of $1.46 per share.
The company reported GAAP earnings of $1.35 per share, up from $1.30 per share registered in the second quarter of 2023.
Revenues
TXT reported total revenues of $3.53 billion, which missed the Zacks Consensus Estimate of $3.55 billion by 0.6%. However, the reported figure increased 3% from the year-ago quarter’s level of $3.42 billion.
Manufacturing revenues improved 3.2% year over year to $3.52 billion.
Textron Inc. Price, Consensus and EPS Surprise
Textron Inc. price-consensus-eps-surprise-chart | Textron Inc. Quote
Segmental Performance
Textron Aviation: Revenues from this segment increased 8.3% year over year to $1.48 billion. The rise was primarily driven by higher pricing, as well as the higher volume and mix.
The segment generated an operating profit of $195 million in the quarter under review compared with $171 million in the year-ago period. This improvement can be attributed to the higher volume and mix and a favorable pricing impact, net of inflation.
Textron Aviation delivered 42 jets compared with 44 in the year-ago quarter. It also delivered 44 commercial turboprops, up from 37 in the second quarter of 2023.
The segment’s order backlog at the end of the quarter totaled $7.5 billion.
Bell: Revenues from this segment amounted to $794 million, up 13.3% 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 26.2% to $82 million, driven by the favorable impact of performance.
Bell delivered 32 commercial helicopters in the quarter, down from 35 last year. Its order backlog at the end of the quarter totaled $4.2 billion.
Textron Systems: This segment’s revenues came in at $323 million, up 5.6% from the year-ago quarter’s reported number, driven by higher volumes.
The segment’s profits were $35 million, down by 5.4% from the previous year’s reported figure.
Textron Systems’ backlog at the end of the second quarter totaled $1.7 billion.
Industrial: Revenues from this segment declined 10.9% to $914 million due to lower volumes and mix.
Moreover, the segment’s profit totaled $42 million compared with $79 million in the prior-year quarter. The decline can be attributed to lower volumes and mix.
Textron eAviation: Revenues from the segment totaled $9 million, down 18.2% year over year. Meanwhile, it reported a loss of $18 million in the second quarter, wider than a reported loss of $12 million in the prior-year period.
Finance: This segment’s revenues declined 33.3% to $12 million. Its profit totaled $7 million in the second quarter compared with $12 million in the year-ago period.
Financials
As of Jun 29, 2024, cash and cash equivalents totaled $1.35 billion compared with $2.12 billion as of Dec 30, 2023.
Cash flow from operating activities amounted to $353 million as of Jun 29, 2024 compared with the cash flow of $467 million in the year-ago period.
Capital expenditures amounted to $74 million in the second quarter of 2024 compared with $83 million in the prior-year period.
The long-term debt totaled $2.88 billion as of Jun 29, 2024 compared with $3.17 billion as of Dec 30, 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, lower than the midpoint of the company’s guided range.
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.
Upcoming Q2 Defense Releases
General Dynamics Corporation (GD - Free Report) is set to report second-quarter 2024 results on Jul 24 before market open. The Zacks Consensus Estimate for GD’s second-quarter earnings is pegged at $3.31 per share, which indicates an improvement of 22.6% from the prior year quarter’s reported figure.
The Zacks Consensus Estimate for General Dynamics’ second-quarter sales is pegged at $11.48 billion, which implies an improvement of 13.1% from the prior-year quarter’s reported figure.
Northrop Grumman (NOC - Free Report) is scheduled to report second-quarter 2024 results on Jul 25 before market open. The Zacks Consensus Estimate for Northrop Grumman’s second-quarter earnings is pegged at $5.95 per share, which calls for an increase of 11.4% from the prior year quarter’s reported figure.
The Zacks Consensus Estimate for NOC’s second-quarter sales is pegged at $10.07 billion, which implies an improvement of 5.2% from the prior-year quarter’s reported figure.
L3Harris Technologies (LHX - Free Report) is slated to report second-quarter 2024 results on Jul 25 after market close. The Zacks Consensus Estimate for L3Harris Technologies’ second-quarter earnings is pegged at $3.18 per share, which suggests growth of 7.1% from the prior year quarter’s reported figure.
The Zacks Consensus Estimate for LHX’s second-quarter sales is pegged at $5.29 billion, which indicates an improvement of 12.8% from the prior-year quarter’s reported figure.