Textron Inc. (TXT - Free Report) reported third-quarter 2020 adjusted earnings of 53 cents per share, which exceeded the Zacks Consensus Estimate of 35 cents by 51.4%.
Including one-time items, the company posted GAAP earnings of 50 cents per share compared with 95 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 jet and aftermarket volume.
Revenues
Total revenues came in at $2,735 million, which missed the Zacks Consensus Estimate of $2,822 million by 3.1%. The reported figure also decreased 16.1% from the year-ago quarter’s $3,259 million on lower contributions from the company’s Aviation, Textron Systems and Industrial segments.
Manufacturing revenues decreased 16.1% to $2,722 million while revenues at the Finance division declined 7.1% to $13 million.
Segmental Performance
Textron Aviation: In the quarter under review, revenues at this segment plunged 33.8% to $795 million from $1,201 million in the year-ago quarter. The decline was primarily due to lower Citation jet volume and lower commercial turboprop volume on account of COVID-19 induced demand fall. Also, lower aftermarket volume owing to reduced aircraft utilization contributed to the unit’s revenue decline.
The company delivered 25 jets, down from 45 in the year-ago quarter. It also delivered 21 commercial turboprops, down from 39 in third-quarter 2019.
The segment incurred loss of $29 million in the quarter against profit of $104 million earned in the year-ago quarter, owing to lower volume and mix. The order backlog at the end of the quarter was $1.8 billion.
Bell: Revenues from this segment were $793 million, up 1.3% from the year-ago quarter’s $783 million, primarily due to higher military volume.
The segment delivered 41 commercial helicopters in the quarter, down from 42 last year.
Segment profits were up 8.2% to $119 million on account of favorable performance. Bell’s order backlog at the end of the quarter was $5.7 billion, down $0.1 billion sequentially.
Textron Systems: Revenues at this segment came in at $302 million, down from $311 million in the year-ago period. The deterioration can be attributable to lower volume at the TRU Simulation and Training business.
Segmental profits increased 29% year over year to $40 million in the third quarter.
Textron Systems’ backlog at the end of the third quarter was $1.9 billion, flat sequentially.
Industrial: Revenues at this segment declined 12.4% to $832 million due to lower volume and mix in the Specialized Vehicles product line.
Moreover, segment profit was $58 million compared with $47 million in the previous year quarter owing to lower volume and mix.
Finance: Revenues at this segment decreased to $13 million from $14 million in the year-ago quarter.
Financials
As of Oct 3, 2020, cash and cash equivalents totaled $2,518 million compared with $1,181 million as of Jan 4, 2020.
Cash flow from operating activities amounted to $220 million at the end of the third quarter compared with $205 million at the end of the prior-year period.
Capital expenditures were $55 million in third-quarter 2020 compared with $81 million in third-quarter 2019.
Long-term debt was $3,199 million as of Oct 3, 2020, compared with $2,563 million as of Jan 4, 2020.
Zacks Rank
Textron currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Lockheed Martin (LMT - Free Report) reported third-quarter 2020 earnings from continuing operations of $6.25 per share, which surpassed the Zacks Consensus Estimate of $6.07 by 3%.
Hexcel (HXL - Free Report) reported third-quarter 2020 loss of 29 cents per share against the Zacks Consensus Estimate of earnings of 7 cents. The bottom line also declined from the prior-year quarter’s earnings per share of 90 cents.
The Boeing Company (BA - Free Report) incurred adjusted loss of $1.39 per share for third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of $2.33.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>
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 >>
Textron Inc. (TXT - Free Report) reported third-quarter 2020 adjusted earnings of 53 cents per share, which exceeded the Zacks Consensus Estimate of 35 cents by 51.4%.
Including one-time items, the company posted GAAP earnings of 50 cents per share compared with 95 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 jet and aftermarket volume.
Revenues
Total revenues came in at $2,735 million, which missed the Zacks Consensus Estimate of $2,822 million by 3.1%. The reported figure also decreased 16.1% from the year-ago quarter’s $3,259 million on lower contributions from the company’s Aviation, Textron Systems and Industrial segments.
Manufacturing revenues decreased 16.1% to $2,722 million while revenues at the Finance division declined 7.1% to $13 million.
Segmental Performance
Textron Aviation: In the quarter under review, revenues at this segment plunged 33.8% to $795 million from $1,201 million in the year-ago quarter. The decline was primarily due to lower Citation jet volume and lower commercial turboprop volume on account of COVID-19 induced demand fall. Also, lower aftermarket volume owing to reduced aircraft utilization contributed to the unit’s revenue decline.
The company delivered 25 jets, down from 45 in the year-ago quarter. It also delivered 21 commercial turboprops, down from 39 in third-quarter 2019.
The segment incurred loss of $29 million in the quarter against profit of $104 million earned in the year-ago quarter, owing to lower volume and mix. The order backlog at the end of the quarter was $1.8 billion.
Bell: Revenues from this segment were $793 million, up 1.3% from the year-ago quarter’s $783 million, primarily due to higher military volume.
The segment delivered 41 commercial helicopters in the quarter, down from 42 last year.
Segment profits were up 8.2% to $119 million on account of favorable performance. Bell’s order backlog at the end of the quarter was $5.7 billion, down $0.1 billion sequentially.
Textron Systems: Revenues at this segment came in at $302 million, down from $311 million in the year-ago period. The deterioration can be attributable to lower volume at the TRU Simulation and Training business.
Segmental profits increased 29% year over year to $40 million in the third quarter.
Textron Systems’ backlog at the end of the third quarter was $1.9 billion, flat sequentially.
Industrial: Revenues at this segment declined 12.4% to $832 million due to lower volume and mix in the Specialized Vehicles product line.
Moreover, segment profit was $58 million compared with $47 million in the previous year quarter owing to lower volume and mix.
Finance: Revenues at this segment decreased to $13 million from $14 million in the year-ago quarter.
Financials
As of Oct 3, 2020, cash and cash equivalents totaled $2,518 million compared with $1,181 million as of Jan 4, 2020.
Cash flow from operating activities amounted to $220 million at the end of the third quarter compared with $205 million at the end of the prior-year period.
Capital expenditures were $55 million in third-quarter 2020 compared with $81 million in third-quarter 2019.
Long-term debt was $3,199 million as of Oct 3, 2020, compared with $2,563 million as of Jan 4, 2020.
Zacks Rank
Textron currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Lockheed Martin (LMT - Free Report) reported third-quarter 2020 earnings from continuing operations of $6.25 per share, which surpassed the Zacks Consensus Estimate of $6.07 by 3%.
Hexcel (HXL - Free Report) reported third-quarter 2020 loss of 29 cents per share against the Zacks Consensus Estimate of earnings of 7 cents. The bottom line also declined from the prior-year quarter’s earnings per share of 90 cents.
The Boeing Company (BA - Free Report) incurred adjusted loss of $1.39 per share for third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of $2.33.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>
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 >>
Get the latest research report on BA - FREE
Get the latest research report on LMT - FREE
Get the latest research report on TXT - FREE
Get the latest research report on HXL - FREE