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Diversified U.S. conglomerate Textron Inc. (TXT - Free Report) reported first-quarter 2017 adjusted earnings from continuing operations of 46 cents per share, in line with the Zacks Consensus Estimate.
Excluding one-time items, the company reported earnings of 37 cents, which were down 32.7% from 55 cents in the year-ago quarter.
Revenues
Total revenue in the quarter was $3.09 billion, missing the Zacks Consensus Estimate of $3.17 billion by 2.6%. Reported revenues also decreased 3.4% from the year-ago figure of $3.20 billion, primarily on account of lower contribution from the Textron Aviation and Bell segments.
Manufacturing revenues were down 3.3% to $3.08 billion while revenues at the Finance division dropped 10% to $18 million during the quarter.
Textron Aviation: Revenues during the first quarter fell 11.1% to $970 million from $1,091 million in the year-ago quarter owing to lower military and commercial turboprop volumes, partially offset by higher pre-owned volumes.
The company delivered 35 new Citation jets, 2 Beechcraft T-6 trainers and12 King Air turboprops, compared with 34 jets, 9 trainers and 26 King Air turboprops in the prior-year quarter.
The segment registered profits of $36 million, compared with $73 million in the year-ago quarter. Order backlog at the end of the quarter under review was $1 billion, flat sequentially.
Bell: Segment revenues were $697 million, down from the year-ago level of $814 million.
The segment delivered 27 commercial helicopters, compared with 30 units in the prior-year quarter. Bell also delivered 6 V-22s (flat with first-quarter 2016) and 3 H-1s (down from 10 in first-quarter 2016).
Segmental profits improved 1.2% to $83 million on favorable performance. Bell’s order backlog at the end of the quarter was $5.7 billion, up by $292 million from the preceding quarter.
Textron Systems: Revenues during the reported quarter came in at $416 million, up 28.4% year over year, mainly driven by higher volumes at Weapons and Sensors and Marine and Land Systems.
Segmental profits dropped from $29 million to $20 million due to unfavorable performance at Marine and Land Systems.
Textron Systems’ backlog at the end of the first quarter was $1.7 billion, down by $113 million from the end of the fourth quarter of 2016.
Industrial: Segmental revenues grew 4.2% to $992 million driven by higher volumes at Kautex and synergies from acquisitions.
Segmental profits dropped 16.5% to $15 million due to unfavorable performance.
Financials
As of Apr 1, 2017, cash and cash equivalents were $858 million, compared with $1,137 million as of Dec 31, 2016.
Capital expenditure during the quarter was $76 million, compared with $88 million in the year-ago quarter.
Long-term debt was $2,768 million as of Apr 1, 2017, up from $2,414 million as of Dec 31, 2016.
Guidance
Textron lowered its 2017 bottom-line guidance, considering closure of the Arctic Cat acquisition. The company now expects adjusted earnings per share in the range of $2.40–$2.60 compared to the earlier projection of $2.50–$2.70.
On the top-line front, the company had earlier announced revenue expectations of $14.3 billion.
However, the company – a Zacks Rank #3 (Hold) stock – continues to expect cash flow from continuing operations (of the manufacturing group) before pension contributions in the $650–$750 million band for 2017.
Upcoming Peer Releases
General Dynamics Corp. (GD - Free Report) has an Earnings ESP of +0.43% and a Zacks Rank #3. The company is scheduled to report quarterly results on Apr 26.
Northrop Grumman Corp (NOC - Free Report) has an Earnings ESP of +0.35% and a Zacks Rank #2. The company is expected to release results on Apr 26.
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Textron (TXT) Posts In-Line Q1 Earnings, Cuts '17 EPS View
Diversified U.S. conglomerate Textron Inc. (TXT - Free Report) reported first-quarter 2017 adjusted earnings from continuing operations of 46 cents per share, in line with the Zacks Consensus Estimate.
Excluding one-time items, the company reported earnings of 37 cents, which were down 32.7% from 55 cents in the year-ago quarter.
Revenues
Total revenue in the quarter was $3.09 billion, missing the Zacks Consensus Estimate of $3.17 billion by 2.6%. Reported revenues also decreased 3.4% from the year-ago figure of $3.20 billion, primarily on account of lower contribution from the Textron Aviation and Bell segments.
Manufacturing revenues were down 3.3% to $3.08 billion while revenues at the Finance division dropped 10% to $18 million during the quarter.
Textron Inc. Price, Consensus and EPS Surprise
Textron Inc. Price, Consensus and EPS Surprise | Textron Inc. Quote
Segment Performance
Textron Aviation: Revenues during the first quarter fell 11.1% to $970 million from $1,091 million in the year-ago quarter owing to lower military and commercial turboprop volumes, partially offset by higher pre-owned volumes.
The company delivered 35 new Citation jets, 2 Beechcraft T-6 trainers and12 King Air turboprops, compared with 34 jets, 9 trainers and 26 King Air turboprops in the prior-year quarter.
The segment registered profits of $36 million, compared with $73 million in the year-ago quarter. Order backlog at the end of the quarter under review was $1 billion, flat sequentially.
Bell: Segment revenues were $697 million, down from the year-ago level of $814 million.
The segment delivered 27 commercial helicopters, compared with 30 units in the prior-year quarter. Bell also delivered 6 V-22s (flat with first-quarter 2016) and 3 H-1s (down from 10 in first-quarter 2016).
Segmental profits improved 1.2% to $83 million on favorable performance. Bell’s order backlog at the end of the quarter was $5.7 billion, up by $292 million from the preceding quarter.
Textron Systems: Revenues during the reported quarter came in at $416 million, up 28.4% year over year, mainly driven by higher volumes at Weapons and Sensors and Marine and Land Systems.
Segmental profits dropped from $29 million to $20 million due to unfavorable performance at Marine and Land Systems.
Textron Systems’ backlog at the end of the first quarter was $1.7 billion, down by $113 million from the end of the fourth quarter of 2016.
Industrial: Segmental revenues grew 4.2% to $992 million driven by higher volumes at Kautex and synergies from acquisitions.
Segmental profits dropped 16.5% to $15 million due to unfavorable performance.
Financials
As of Apr 1, 2017, cash and cash equivalents were $858 million, compared with $1,137 million as of Dec 31, 2016.
Capital expenditure during the quarter was $76 million, compared with $88 million in the year-ago quarter.
Long-term debt was $2,768 million as of Apr 1, 2017, up from $2,414 million as of Dec 31, 2016.
Guidance
Textron lowered its 2017 bottom-line guidance, considering closure of the Arctic Cat acquisition. The company now expects adjusted earnings per share in the range of $2.40–$2.60 compared to the earlier projection of $2.50–$2.70.
On the top-line front, the company had earlier announced revenue expectations of $14.3 billion.
However, the company – a Zacks Rank #3 (Hold) stock – continues to expect cash flow from continuing operations (of the manufacturing group) before pension contributions in the $650–$750 million band for 2017.
Upcoming Peer Releases
General Dynamics Corp. (GD - Free Report) has an Earnings ESP of +0.43% and a Zacks Rank #3. The company is scheduled to report quarterly results on Apr 26.
Leidos Holdings, Inc. (LDOS - Free Report) , slated to report on May 4, has an Earnings ESP of +1.28% and a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Northrop Grumman Corp (NOC - Free Report) has an Earnings ESP of +0.35% and a Zacks Rank #2. The company is expected to release results on Apr 26.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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