Textron Inc. TXT is scheduled to release third-quarter 2024 results on Oct. 24, before market open.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The company has a four-quarter average earnings surprise of 4.75%. The solid revenue performance across most of its business segments is likely to have contributed favorably to Textron’s top-line performance. However, charges related to its restructuring plan are likely to have hurt overall earnings.
Textron Aviation – A Key Contributor to Revenues
Robust growth in aftermarket revenues, bolstered by solid aircraft utilization driven by improved commercial air travel in recent years, is likely to have benefited Textron Aviation’s revenue performance. Revenues earned from robust jet and commercial turboprop deliveries are expected to have boosted this segment’s top line.
The Zacks Consensus Estimate for this segment’s revenues is pegged at $1,463.5 million, which indicates an improvement of 9.4% from the year-ago reported actuals.
Factors Likely to Have Impacted Bell’s Performance
Higher military sales volumes, backed by the continued ramp-up of the FLRAA program, are projected to have bolstered the Bell unit’s revenue performance.
Moreover, the unit successfully delivered a handful of products like two 407GXis to Louisiana State Police, one 412EPI to the Bernalillo County Sheriff's Office, five 505 aircraft to the Royal Jordanian Air Force and one Bell 429 aircraft to Mendes Group in the third quarter. Such deliveries are also expected to have boosted this segment’s top line.
However, a lower volume of the V-22 program is likely to have adversely impacted this segment’s overall revenues to some extent. The Zacks Consensus Estimate for revenues is pegged at $821.7 million, which indicates growth of 9% from the top line reported a year ago.
Textron Systems’ Revenues
Higher sales volumes from the majority of the Textron System’s programs are likely to have added an impetus to the unit’s revenue performance.
The Zacks Consensus Estimate for revenues is pegged at $328.6 million, which implies a rise of 6.3% from the year-ago reported figure.
Factors Likely to Have Impacted Industrial Unit’s Performance
Lower volumes from the specialized vehicles product line are likely to have impacted the Industrial segment’s performance.
The Zacks Consensus Estimate for the Industrial segment’s revenues is pegged at $889.7 million, which indicates a decline of 3.5% from the year-ago level.
Q3 Estimates
The expected robust revenue performance in the majority of its business segments is likely to have boosted TXT’s overall top line. The Zacks Consensus Estimate for revenues is pegged at $3.51 billion, which indicates a rise of 4.9% from the year-ago figure.
A strong top line, along with the favorable impact of pricing, is likely to have boosted the company’s bottom line.
However, special charges related to the company’s earlier announced restructuring plan to further reduce operating expenses through headcount reductions are likely to have hurt its overall earnings performance.
The Zacks Consensus Estimate for TXT’s earnings is pegged at $1.46 per share, which indicates a decline of 2% from the prior-year figure.
TXT’s Backlog Projections
Our model expects Textron’s backlog to decline 7.2% to $13.48 billion.
Textron Inc. Price and EPS Surprise
Textron Inc. price-eps-surprise | Textron Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for TXT this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.
Earnings ESP: Textron has an Earnings ESP of -0.43%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: TXT currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Below we have mentioned the following players from the same sector that have the right combination of elements to beat on earnings this reporting cycle.
Leidos Holdings, Inc. LDOS is set to report third-quarter earnings on Oct. 29, before market open. It has an Earnings ESP of +2.78% and a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for LDOS’ earnings is pegged at $1.96 per share. The consensus estimate for sales is pegged at $4.04 billion, indicating year-over-year growth of 3.16%.
L3Harris Technologies, Inc. LHX is slated to report third-quarter 2024 results on Oct. 24, after market close. It has an Earnings ESP of +1.19% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for LHX’s earnings is pegged at $3.26 per share. The consensus estimate for sales is pegged at $5.31 billion, indicating year-over-year growth of 8%.
CurtissWright CW is expected to report third-quarter results on Oct. 30, after market close. It has an Earnings ESP of +0.54% and a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for CW’s earnings is pegged at $2.70 per share. The consensus estimate for sales is pegged at $756 million, indicating year-over-year growth of 4.4%.
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