Diversified U.S. conglomerate Textron Inc. (TXT - Free Report) reported second-quarter 2016 earnings from continuing operations of 66 cents per share, beating the Zacks Consensus Estimate of 63 cents by 4.8%. Earnings were also up 10% from 60 cents per share reported in the year-ago quarter.
Revenues
Total revenue in the quarter was $3,511 million, beating the Zacks Consensus Estimate of $3,331 million by 5.4%. Reported revenues also climbed 8.1% from the year-ago figure of $3,247 million primarily on account of higher contribution from Textron Aviation, Textron Systems and Industrial.
Manufacturing revenues were up 8.3% to $3,491 million while revenues at the Finance division tanked 16.7% to $20 million during the quarter.
Segment Performance
Textron Aviation: Revenues during the second quarter increased 6.4% to $1,196 million from $1,124 million in the year-ago quarter owing to volume and mix.
The company delivered 45 new Citation jets and 23 King Air turboprops, compared with 36 jets and 30 King Airs in the prior-year quarter.
The segment registered profit of $81 million, compared with $88 million in the year-ago quarter. Order backlog at the end of the first quarter was $1.1 billion, reflecting a sequential increase of $122 million.
Bell: Segment revenues were $804 million, down from the year-ago level of $850 million.
The segment delivered 24 commercial helicopters, compared with 39 units in the prior-year period. Bell also delivered 6 V-22s (unchanged) and 9 H-1s (from 6 in the second-quarter 2015).
Segment profit tumbled 19.8% to $81 million. Bell’s order backlog at the end of the quarter was $4.9 billion, down by $376 million from the first quarter.
Textron Systems: Revenues at this division during the reported quarter were $487 million, up 51.2% year over year. The upside was mainly due to higher volumes of Weapons and Sensors, and Unmanned Systems.
Segment profit of $60 million increased from $21 million a year ago.
Textron Systems’ backlog at the end of the second quarter was $2.3 billion, down by $242 million from the end of the first quarter.
Industrial: Segment revenues increased 8.3% to $1,004 million driven by higher volumes and acquisitions. Segment profit improved 15.1% to $99 million.
Financials
As of Jul 2, 2016, cash and cash equivalents were $661 million, compared with $946 million as of Jan 2, 2016.
Capital expenditure during the quarter was $119 million compared with $94 million in the year-ago quarter. Long-term debt was $2,785 million, as of Jul 2, 2016, up from $2,435 million as of Jan 2, 2016.
Guidance
Textron maintained its 2016 earnings per share guidance in the range of $2.60 to $2.80.
The company continues to expect cash flow from continuing operations (of the manufacturing group) before pension contributions in the $600–$700 million band.
Textron currently carries a Zacks Rank #4 (Sell).
Upcoming Releases
The Boeing Company (BA - Free Report) , Northrop Grumman Corp. (NOC - Free Report) and General Dynamics Corporation (GD - Free Report) are all scheduled to release second-quarter 2016 results on Jul 27.
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Diversified U.S. conglomerate Textron Inc. (TXT - Free Report) reported second-quarter 2016 earnings from continuing operations of 66 cents per share, beating the Zacks Consensus Estimate of 63 cents by 4.8%. Earnings were also up 10% from 60 cents per share reported in the year-ago quarter.
Revenues
Total revenue in the quarter was $3,511 million, beating the Zacks Consensus Estimate of $3,331 million by 5.4%. Reported revenues also climbed 8.1% from the year-ago figure of $3,247 million primarily on account of higher contribution from Textron Aviation, Textron Systems and Industrial.
Manufacturing revenues were up 8.3% to $3,491 million while revenues at the Finance division tanked 16.7% to $20 million during the quarter.
Segment Performance
Textron Aviation: Revenues during the second quarter increased 6.4% to $1,196 million from $1,124 million in the year-ago quarter owing to volume and mix.
The company delivered 45 new Citation jets and 23 King Air turboprops, compared with 36 jets and 30 King Airs in the prior-year quarter.
The segment registered profit of $81 million, compared with $88 million in the year-ago quarter. Order backlog at the end of the first quarter was $1.1 billion, reflecting a sequential increase of $122 million.
Bell: Segment revenues were $804 million, down from the year-ago level of $850 million.
The segment delivered 24 commercial helicopters, compared with 39 units in the prior-year period. Bell also delivered 6 V-22s (unchanged) and 9 H-1s (from 6 in the second-quarter 2015).
Segment profit tumbled 19.8% to $81 million. Bell’s order backlog at the end of the quarter was $4.9 billion, down by $376 million from the first quarter.
Textron Systems: Revenues at this division during the reported quarter were $487 million, up 51.2% year over year. The upside was mainly due to higher volumes of Weapons and Sensors, and Unmanned Systems.
Segment profit of $60 million increased from $21 million a year ago.
Textron Systems’ backlog at the end of the second quarter was $2.3 billion, down by $242 million from the end of the first quarter.
Industrial: Segment revenues increased 8.3% to $1,004 million driven by higher volumes and acquisitions. Segment profit improved 15.1% to $99 million.
Financials
As of Jul 2, 2016, cash and cash equivalents were $661 million, compared with $946 million as of Jan 2, 2016.
Capital expenditure during the quarter was $119 million compared with $94 million in the year-ago quarter. Long-term debt was $2,785 million, as of Jul 2, 2016, up from $2,435 million as of Jan 2, 2016.
Guidance
Textron maintained its 2016 earnings per share guidance in the range of $2.60 to $2.80.
The company continues to expect cash flow from continuing operations (of the manufacturing group) before pension contributions in the $600–$700 million band.
Textron currently carries a Zacks Rank #4 (Sell).
Upcoming Releases
The Boeing Company (BA - Free Report) , Northrop Grumman Corp. (NOC - Free Report) and General Dynamics Corporation (GD - Free Report) are all scheduled to release second-quarter 2016 results on Jul 27.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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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