Textron Inc. (TXT - Free Report) reported second-quarter 2020 adjusted earnings of 13 cents per share against the Zacks Consensus Estimate of a loss of 15 cents.
Including one-time items, the company posted GAAP loss of 40 cents per share against income of 93 cents generated in the year-ago quarter.
This year-over-year deterioration can be attributed to COVID-19, which led the company to witness lower commercial volume and idle facility cost.
Revenues
Total revenues came in at $2,472 million, which surpassed the Zacks Consensus Estimate of $2,351 million by 5.1%. However, the reported figure decreased 23.5% from the year-ago quarter’s $3,227 million on lower contributions from the company’s Aviation and Industrial segments.
Manufacturing revenues decreased 23.5% to $2,472 million, while revenues at the Finance division declined 6.3% to $15 million.
Segmental Performance
Textron Aviation: In the quarter under review, revenues at this segment plunged 33.5% to $747 million from $1,123 million in the year-ago quarter. The decline was primarily due to lower Citation jet volume, delays in the acceptance of aircraft related to COVID-19 travel restrictions, and lower aftermarket volume, reflecting lower aircraft utilization.
The company delivered 23 jets, down from 46 in the year-ago quarter. It also delivered 15 commercial turboprops, down from 34 in first-quarter 2019.
The segment incurred loss of $66 million in the quarter, down from loss of $105 million in the year-ago quarter, owing to lower volume and mix. The order backlog at the end of the quarter was $1.4 billion.
Bell: Revenues from this segment were $822 million, up 6.6% from the year-ago quarter’s $771 million, primarily due to higher military volume.
The segment delivered 27 commercial helicopters in the quarter, down from 53 last year.
Segment profits were up 14.6% to $118 million on account of higher military volume. Bell’s order backlog at the end of the quarter was $5.8 billion, down $0.6 billion sequentially.
Textron Systems: Revenues at this segment came in at $326 million, up from $308 million in the year-ago period. The upside can be primarily attributed to higher volume at this unit’s unmanned systems product line.
Segmental profits decreased 24.5% year over year to $37 million in the second quarter.
Textron Systems’ backlog at the end of the second quarter was $1.9 billion, higher than $1.4 billion at the end of the previous quarter.
Industrial: Revenues at this segment declined a huge 44.3% to $562 million, due to lower revenues from Fuel Systems and Functional Components as well as Textron Specialized Vehicles.
Moreover, segmental loss was $11 million compared to loss of $76 million in the previous quarter owing to lower volume and mix.
Finance: Revenues at this segment decreased to $15 million from $16 million in the year-ago quarter.
Financials
As of Jul 4, 2020, cash and cash equivalents totaled $2,176 million compared with $1,181 million as of Jan 4, 2020.
Cash outflow from operating activities amounted to $148 million at the end of the second quarter compared with cash outflow of $33 million at the end of the prior-year period.
Capital expenditures were $46 million in second-quarter 2020 compared with $76 million in second-quarter 2019.
Long-term debt was $2,955 million as of Jul 4, 2020, compared with $2,563 million as of Jan 4, 2020.
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.
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Teledyne Technologies (TDY - Free Report) reported second-quarter 2020 adjusted earnings of $2.43 per share, which surpassed the Zacks Consensus Estimate of $2.01 by 20.9%.
Lockheed Martin (LMT - Free Report) reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2020 adjusted earnings of 8 cents per share, which missed the Zacks Consensus Estimate of 20 cents by 60%.
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Textron Inc. (TXT - Free Report) reported second-quarter 2020 adjusted earnings of 13 cents per share against the Zacks Consensus Estimate of a loss of 15 cents.
Including one-time items, the company posted GAAP loss of 40 cents per share against income of 93 cents generated in the year-ago quarter.
This year-over-year deterioration can be attributed to COVID-19, which led the company to witness lower commercial volume and idle facility cost.
Revenues
Total revenues came in at $2,472 million, which surpassed the Zacks Consensus Estimate of $2,351 million by 5.1%. However, the reported figure decreased 23.5% from the year-ago quarter’s $3,227 million on lower contributions from the company’s Aviation and Industrial segments.
Manufacturing revenues decreased 23.5% to $2,472 million, while revenues at the Finance division declined 6.3% to $15 million.
Segmental Performance
Textron Aviation: In the quarter under review, revenues at this segment plunged 33.5% to $747 million from $1,123 million in the year-ago quarter. The decline was primarily due to lower Citation jet volume, delays in the acceptance of aircraft related to COVID-19 travel restrictions, and lower aftermarket volume, reflecting lower aircraft utilization.
The company delivered 23 jets, down from 46 in the year-ago quarter. It also delivered 15 commercial turboprops, down from 34 in first-quarter 2019.
The segment incurred loss of $66 million in the quarter, down from loss of $105 million in the year-ago quarter, owing to lower volume and mix. The order backlog at the end of the quarter was $1.4 billion.
Bell: Revenues from this segment were $822 million, up 6.6% from the year-ago quarter’s $771 million, primarily due to higher military volume.
The segment delivered 27 commercial helicopters in the quarter, down from 53 last year.
Segment profits were up 14.6% to $118 million on account of higher military volume. Bell’s order backlog at the end of the quarter was $5.8 billion, down $0.6 billion sequentially.
Textron Systems: Revenues at this segment came in at $326 million, up from $308 million in the year-ago period. The upside can be primarily attributed to higher volume at this unit’s unmanned systems product line.
Segmental profits decreased 24.5% year over year to $37 million in the second quarter.
Textron Systems’ backlog at the end of the second quarter was $1.9 billion, higher than $1.4 billion at the end of the previous quarter.
Industrial: Revenues at this segment declined a huge 44.3% to $562 million, due to lower revenues from Fuel Systems and Functional Components as well as Textron Specialized Vehicles.
Moreover, segmental loss was $11 million compared to loss of $76 million in the previous quarter owing to lower volume and mix.
Finance: Revenues at this segment decreased to $15 million from $16 million in the year-ago quarter.
Financials
As of Jul 4, 2020, cash and cash equivalents totaled $2,176 million compared with $1,181 million as of Jan 4, 2020.
Cash outflow from operating activities amounted to $148 million at the end of the second quarter compared with cash outflow of $33 million at the end of the prior-year period.
Capital expenditures were $46 million in second-quarter 2020 compared with $76 million in second-quarter 2019.
Long-term debt was $2,955 million as of Jul 4, 2020, compared with $2,563 million as of Jan 4, 2020.
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
Teledyne Technologies (TDY - Free Report) reported second-quarter 2020 adjusted earnings of $2.43 per share, which surpassed the Zacks Consensus Estimate of $2.01 by 20.9%.
Lockheed Martin (LMT - Free Report) reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2020 adjusted earnings of 8 cents per share, which missed the Zacks Consensus Estimate of 20 cents by 60%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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