Textron Inc. TXT reported third-quarter 2024 adjusted earnings of $1.40 per share, which missed the Zacks Consensus Estimate of $1.46 by 4.1%. The bottom line also declined 6% from $1.49 per share in the year-ago quarter.
The company reported GAAP earnings of $1.18 per share, down from $1.35 per share reported in the third quarter of 2023.
TXT’s Revenues
TXT reported total revenues of $3.43 billion, which missed the Zacks Consensus Estimate of $3.51 billion by 2.3%. However, revenues increased 2.5% from the year-ago quarter’s level of $3.34 billion.
Manufacturing revenues improved 2.6% year over year to $3.42 billion.
Textron Inc. Price, Consensus and EPS Surprise
Textron Inc. price-consensus-eps-surprise-chart | Textron Inc. Quote
Segmental Performance of Textron
Textron Aviation: Revenues from this segment were almost flat year over year at $1.34 billion. This was primarily due to higher pricing, offset by lower volume and mix.
The segment generated an operating profit of $128 million compared with $160 million in the year-ago period. This decline can be attributed to the lower volume and mix.
Textron Aviation delivered 41 jets, up from 39 in the year-ago quarter. It also delivered 25 commercial turboprops, down from 38 in the third quarter of 2023.
The segment’s order backlog at the end of the quarter totaled $7.6 billion.
Bell: Revenues from this segment amounted to $929 million, up 23.2% from the year-ago quarter’s number. This was driven by increased military revenues, primarily related to the FLRAA program, along with higher commercial volume and mix, reflecting an increase in deliveries.
The segment’s profit improved a solid 27.3% to $98 million, driven by the favorable impact of performance and pricing.
Bell delivered 44 commercial helicopters, up from 23 in the last year. Its order backlog at the end of the quarter totaled $6.5 billion.
Textron Systems: This segment’s revenues were $301 million, down 2.6% from the year-ago quarter’s number, owing to lower volumes.
The segment’s profits were $39 million, down 4.9% from the previous year’s figure.
Textron Systems’ backlog at the end of the quarter totaled $1.9 billion.
Industrial: Revenues from this segment declined 8.9% to $840 million due to lower volumes and mix, notably in the Specialized Vehicles product line.
Moreover, the segment’s profit totaled $32 million compared with $51 million in the prior-year quarter. The decline can be attributed to lower volumes and mix.
Textron eAviation: Revenues from the segment totaled $6 million, down 14.3% year over year. It reported a loss of $18 million, narrower than the reported loss of $19 million in the prior-year period.
Finance: This segment’s revenues declined 7.7% to $12 million. Its profit totaled $5 million compared with $22 million in the year-ago period.
Textron’s Financials
As of Sept. 28, 2024, cash and cash equivalents totaled $1.29 billion compared with $2.12 billion as of Dec. 30, 2023.
Cash flow from operating activities in the first nine months of 2024 amounted to $561 million compared with $737 million in the year-ago period.
Capital expenditures amounted to $71 million compared with $79 million in the prior-year period.
The long-term debt totaled $2.88 billion as of Sept. 28, 2024, compared with $3.17 billion as of Dec. 30, 2023.
TXT’s Guidance
Textron revised its 2024 adjusted earnings per share (EPS) outlook. The company now expects the metric to be in the range of $5.40-$5.60, down from the previous estimated band of $6.20-$6.40. The Zacks Consensus Estimate for TXT’s earnings is pegged at $6.10 per share, which lies above its new guided range.
The decline in TXT’s EPS outlook is due to the four-week strike undertaken by the International Association of Machinists and Aerospace Workers, which ended on Oct. 20, 2024. The company’s production and delivery activities have been affected by the aforementioned labor disruption.
The company also lowered its manufacturing cash flow guidance before pension contributions to a range of $0.65-$0.75 billion compared with the prior outlook of $0.90-$1.00 billion.
TXT’s 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
Hexcel Corporation HXL reported third-quarter adjusted earnings of 47 cents per share, which improved 23.7% from the year-ago quarter’s figure of 38 cents. The bottom line also surpassed the Zacks Consensus Estimate by 2.2%.
Net sales totaled $456.5 million, which beat the consensus estimate of $456.2 million by 0.1%. The top line also witnessed an improvement of 8.8% from the year-ago quarter’s figure of $419.5 million.
RTX Corporation RTX reported third-quarter 2024 adjusted EPS of $1.45, which surpassed the Zacks Consensus Estimate of $1.33 by 9%. The bottom line also improved 16% from the year-ago quarter’s level of $1.25.
RTX’s sales totaled $20.09 billion, which surpassed the consensus estimate of $19.91 billion by 0.9%. The top line also surged 49.2% from $13.46 billion recorded in the third quarter of 2023.
Lockheed Martin Corporation LMT reported third-quarter adjusted earnings of $6.84 per share, which beat the Zacks Consensus Estimate of $6.47 by 5.7%. The bottom line also rose 1% from the year-ago quarter's figure of $6.77.
Net sales totaled $17.10 billion, which missed the consensus estimate of $17.28 billion by 1%. The top line, however, increased 1.3% from $16.88 billion reported in the year-ago quarter.
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