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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.
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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.