Textron Inc. (TXT - Free Report) reported third-quarter 2023 adjusted earnings of $1.49 per share, which surpassed the Zacks Consensus Estimate of $1.27 by 17.3%. The bottom line also improved 29.6% from the year-ago quarter’s recorded figure.
The company reported GAAP earnings of $1.35 per share, up from $1.06 registered in the third quarter of 2022.
Revenues
TXT reported total revenues of $3,343 million, which missed the Zacks Consensus Estimate of $3,448.8 million by 3.1%. However, the reported figure increased 8.6% from the year-ago quarter’s level of $3,078 million.
Manufacturing revenues improved 8.6% year over year to $3,330 million. Revenues in the Finance division surged 18.2% to $13 million.
Segmental Performance
Textron Aviation: Revenues from this segment increased 14.7% year over year to $1,338 million. The increase was primarily driven by higher volume and pricing.
The segment generated an operating profit of $160 million in the quarter under review compared with $131 million in the year-ago period. This improvement can be attributed to favorable pricing, net of inflation and a favorable impact from higher volume and mix.
Textron Aviation delivered 39 jets, in line with the year-ago quarter’s figure. It also delivered 38 commercial turboprops, up from 33 in the third quarter of 2022.
The segment’s order backlog at the end of the quarter totaled $7.4 billion.
Bell: Revenues from this segment amounted to $754 million, in line with the year-ago quarter’s reported number. This was due to higher military volume.
The segment’s profit increased 4% to $77 million, driven by lower research and development costs.
Bell delivered 23 commercial helicopters in the quarter, down from 49 last year. Its order backlog at the end of the quarter totaled $5.2 billion, down sequentially from $5.6 billion.
Textron Systems: This segment’s revenues totaled $309 million, up 5.8% from the year-ago period’s level. This improvement was driven by higher volume.
Segmental profits increased 32.3% year over year to $41 million, primarily driven by a favorable impact from performance.
Textron Systems’ backlog at the end of the third quarter totaled $2 billion.
Industrial: Revenues from this segment improved 8.6% to $922 million, driven by higher volume and mix at both Kautex and Textron Specialized Vehicles, as well as a favorable impact from pricing.
Moreover, the segment’s profit totaled $51 million compared with $36 million in the prior-year quarter. The improvement can be attributed to a higher volume and mix as well as a favorable impact from pricing, and net of inflation.
Textron eAviation: Revenues from the segment totaled $7 million, up 40% year over year. Meanwhile, it reported a loss of $19 million in the third quarter, wider than a reported loss of $7 million in the prior-year period.
Finance: This segment’s revenues improved 18.2% to $13 million. Its profit totaled $22 million in the third quarter compared with $7 million in the year-ago period.
Financials
As of Sep 30, 2023, cash and cash equivalents totaled $1,671 million compared with $1,963 million as of Dec 31, 2022.
Cash flow from operating activities amounted to $737 million as of Sep 30, 2023, compared with $945 million in the year-ago period.
Capital expenditures amounted to $79 million compared with $78 million in the prior-year period.
The long-term debt was $2,824 million as of Sep 30, 2023, compared with $3,175 million as of Dec 31, 2022.
Guidance
Textron has raised its guidance for 2023 adjusted earnings per share to $5.45-$5.55 from the earlier projected range of $5.20-$5.30. The Zacks Consensus Estimate for TXT’s 2023 earnings is pegged at $5.27 per share, which lies below the company’s guided range.
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 Q3 Defense Earnings
Lockheed Martin Corporation (LMT - Free Report) reported third-quarter 2023 adjusted earnings of $6.77 per share, which beat the Zacks Consensus Estimate of $6.66 by 1.7%. The bottom line, however, deteriorated 1.5% from the year-ago quarter's recorded figure.
Net sales were $16.88 billion, which beat the Zacks Consensus Estimate of $16.66 billion by 1.3%. The top line also rose 1.8% from $16.58 billion reported in the year-ago quarter.
RTX Corporation’s (RTX - Free Report) third-quarter 2023 adjusted earnings per share of $1.25 beat the Zacks Consensus Estimate of $1.19 by 5%. The bottom line also improved 3.3% from the year-ago quarter’s level of $1.21.
RTX’s third-quarter adjusted sales of $18,952 million beat the Zacks Consensus Estimate of $18,709 million by 1.3%.
Hexcel Corporation (HXL - Free Report) reported third-quarter 2023 adjusted earnings of 38 cents per share, which missed the Zacks Consensus Estimate of 42 cents by 9.5%. However, the bottom line improved 15.2% from the year-ago quarter’s level of 33 cents.
Net sales were $420 million, which missed the Zacks Consensus Estimate of $431 million by 2.6%. However, the top line improved 15% from the year-ago quarter’s level of $365 million.
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Textron Inc. (TXT - Free Report) reported third-quarter 2023 adjusted earnings of $1.49 per share, which surpassed the Zacks Consensus Estimate of $1.27 by 17.3%. The bottom line also improved 29.6% from the year-ago quarter’s recorded figure.
The company reported GAAP earnings of $1.35 per share, up from $1.06 registered in the third quarter of 2022.
Revenues
TXT reported total revenues of $3,343 million, which missed the Zacks Consensus Estimate of $3,448.8 million by 3.1%. However, the reported figure increased 8.6% from the year-ago quarter’s level of $3,078 million.
Manufacturing revenues improved 8.6% year over year to $3,330 million. Revenues in the Finance division surged 18.2% to $13 million.
Segmental Performance
Textron Aviation: Revenues from this segment increased 14.7% year over year to $1,338 million. The increase was primarily driven by higher volume and pricing.
The segment generated an operating profit of $160 million in the quarter under review compared with $131 million in the year-ago period. This improvement can be attributed to favorable pricing, net of inflation and a favorable impact from higher volume and mix.
Textron Aviation delivered 39 jets, in line with the year-ago quarter’s figure. It also delivered 38 commercial turboprops, up from 33 in the third quarter of 2022.
The segment’s order backlog at the end of the quarter totaled $7.4 billion.
Bell: Revenues from this segment amounted to $754 million, in line with the year-ago quarter’s reported number. This was due to higher military volume.
The segment’s profit increased 4% to $77 million, driven by lower research and development costs.
Bell delivered 23 commercial helicopters in the quarter, down from 49 last year. Its order backlog at the end of the quarter totaled $5.2 billion, down sequentially from $5.6 billion.
Textron Systems: This segment’s revenues totaled $309 million, up 5.8% from the year-ago period’s level. This improvement was driven by higher volume.
Segmental profits increased 32.3% year over year to $41 million, primarily driven by a favorable impact from performance.
Textron Systems’ backlog at the end of the third quarter totaled $2 billion.
Industrial: Revenues from this segment improved 8.6% to $922 million, driven by higher volume and mix at both Kautex and Textron Specialized Vehicles, as well as a favorable impact from pricing.
Moreover, the segment’s profit totaled $51 million compared with $36 million in the prior-year quarter. The improvement can be attributed to a higher volume and mix as well as a favorable impact from pricing, and net of inflation.
Textron eAviation: Revenues from the segment totaled $7 million, up 40% year over year. Meanwhile, it reported a loss of $19 million in the third quarter, wider than a reported loss of $7 million in the prior-year period.
Finance: This segment’s revenues improved 18.2% to $13 million. Its profit totaled $22 million in the third quarter compared with $7 million in the year-ago period.
Financials
As of Sep 30, 2023, cash and cash equivalents totaled $1,671 million compared with $1,963 million as of Dec 31, 2022.
Cash flow from operating activities amounted to $737 million as of Sep 30, 2023, compared with $945 million in the year-ago period.
Capital expenditures amounted to $79 million compared with $78 million in the prior-year period.
The long-term debt was $2,824 million as of Sep 30, 2023, compared with $3,175 million as of Dec 31, 2022.
Guidance
Textron has raised its guidance for 2023 adjusted earnings per share to $5.45-$5.55 from the earlier projected range of $5.20-$5.30. The Zacks Consensus Estimate for TXT’s 2023 earnings is pegged at $5.27 per share, which lies below the company’s guided range.
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 Q3 Defense Earnings
Lockheed Martin Corporation (LMT - Free Report) reported third-quarter 2023 adjusted earnings of $6.77 per share, which beat the Zacks Consensus Estimate of $6.66 by 1.7%. The bottom line, however, deteriorated 1.5% from the year-ago quarter's recorded figure.
Net sales were $16.88 billion, which beat the Zacks Consensus Estimate of $16.66 billion by 1.3%. The top line also rose 1.8% from $16.58 billion reported in the year-ago quarter.
RTX Corporation’s (RTX - Free Report) third-quarter 2023 adjusted earnings per share of $1.25 beat the Zacks Consensus Estimate of $1.19 by 5%. The bottom line also improved 3.3% from the year-ago quarter’s level of $1.21.
RTX’s third-quarter adjusted sales of $18,952 million beat the Zacks Consensus Estimate of $18,709 million by 1.3%.
Hexcel Corporation (HXL - Free Report) reported third-quarter 2023 adjusted earnings of 38 cents per share, which missed the Zacks Consensus Estimate of 42 cents by 9.5%. However, the bottom line improved 15.2% from the year-ago quarter’s level of 33 cents.
Net sales were $420 million, which missed the Zacks Consensus Estimate of $431 million by 2.6%. However, the top line improved 15% from the year-ago quarter’s level of $365 million.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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