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Textron (TXT) Q4 Earnings Beat Estimates, Revenues Fall Y/Y
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Textron Inc. (TXT - Free Report) reported fourth-quarter 2020 adjusted earnings of $1.06 per share, which exceeded the Zacks Consensus Estimate of 91 cents by 16.5%. The bottom-line figure however deteriorated 4.5% from the year-ago quarter’s figure.
Including one-time items, the company posted GAAP earnings of $1.03 per share compared with 87 cents generated in the year-ago quarter.
For 2020, the company reported adjusted earnings of $2.07 per share, which surpassed the Zacks Consensus Estimate of $1.93. However, the full-year earnings also deteriorated from 2019’s earnings of $3.74 per share.
Revenues
Total revenues came in at $3,667 million, which surpassed the Zacks Consensus Estimate of $3,469 million by 5.7%. The reported figure however decreased 9.1% from the year-ago quarter’s $4,035 million on lower contributions from each of its segments.
For 2020, the company recorded revenues worth $11.65 billion, thereby beating the Zacks Consensus Estimate of $11.41 billion. The full-year revenues however deteriorated from 2019’s $13.63 billion.
Manufacturing revenues decreased 9% in the fourth quarter to $3,654 million while revenues at the Finance division declined 31.6% to $13 million.
Segmental Performance
Textron Aviation: In the quarter under review, revenues at this segment declined 9.8% year over year to $1,560 million. The decline was primarily due to lower Citation jet volume and lower aftermarket volume.
The company delivered 61 jets, down from 71 in the year-ago quarter. It also delivered 61 commercial turboprops, up from 59 in fourth-quarter 2019.
The segment generated operating profit of $108 million in the quarter compared with $134 million earned in the year-ago quarter, owing to lower volume and mix. The order backlog at the end of the quarter was $1.6 billion.
Bell: Revenues from this segment slipped 1% to $871 million, primarily due to lower military volume and commercial volume.
The segment delivered 57 commercial helicopters in the quarter, down from 76 last year.
Segment profits were down 6.8% to $110 million on account of lower volume. Bell’s order backlog at the end of the quarter was $5.3 billion, down $0.4 billion sequentially.
Textron Systems: Revenues at this segment came in at $357 million, down 10.5% the year-ago period. The deterioration can be attributed to lower volume at the TRU Simulation and Training business.
Segmental profits increased 48.5% year over year to $49 million in the fourth quarter due to favorable performance.
Textron Systems’ backlog at the end of the fourth quarter was $2.6 billion, up sequentially.
Industrial: Revenues at this segment declined 6.6% to $866 million due to reduced demand in the ground support equipment business within the Specialized Vehicles product line.
Moreover, segment profit was $55 million compared with $44 million in the previous year quarter. The improvement can be attributed to a favorable impact from pricing and inflation, and favorable performance.
Finance: Revenues at this segment decreased to $13 million from $19 million in the year-ago quarter.
Financials
As of Jan 2, 2021, cash and cash equivalents totaled $2,146 million compared with $1,181 million as of Jan 4, 2020.
Cash flow from operating activities amounted to $833 million at the end of Jan 2, 2021 compared with $960 million at the end of Jan 4, 2020.
Capital expenditures were $317 million during 2020 compared with $339 million in 2019.
Long-term debt was $3,198 million as of Jan 2, 2021, compared with $2,563 million as of Jan 4, 2020.
Guidance
Textron expects to generate adjusted earnings in the range of $2.70-2.90 per share in 2021 on revenues of $12.5 billion. The current Zacks Consensus Estimate for 2021 earnings is pegged at $2.68 per share, lower than the guided range.
The consensus mark for revenues, pegged at $12.58 billion, lies above the guided figure.
Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2020 adjusted earnings per share (EPS) of 74 cents outpaced the Zacks Consensus Estimate of 71 cents by 4.2%.
Lockheed Martin (LMT - Free Report) reported fourth-quarter 2020 earnings from continuing operations of $6.38 per share, which came in line with the Zacks Consensus Estimate.
An Upcoming Defense Release
L3Harris Technologies (LHX - Free Report) is scheduled to announce its fourth-quarter results on Jan 29.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
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Textron (TXT) Q4 Earnings Beat Estimates, Revenues Fall Y/Y
Textron Inc. (TXT - Free Report) reported fourth-quarter 2020 adjusted earnings of $1.06 per share, which exceeded the Zacks Consensus Estimate of 91 cents by 16.5%. The bottom-line figure however deteriorated 4.5% from the year-ago quarter’s figure.
Including one-time items, the company posted GAAP earnings of $1.03 per share compared with 87 cents generated in the year-ago quarter.
For 2020, the company reported adjusted earnings of $2.07 per share, which surpassed the Zacks Consensus Estimate of $1.93. However, the full-year earnings also deteriorated from 2019’s earnings of $3.74 per share.
Revenues
Total revenues came in at $3,667 million, which surpassed the Zacks Consensus Estimate of $3,469 million by 5.7%. The reported figure however decreased 9.1% from the year-ago quarter’s $4,035 million on lower contributions from each of its segments.
Textron Inc. Price, Consensus and EPS Surprise
Textron Inc. price-consensus-eps-surprise-chart | Textron Inc. Quote
For 2020, the company recorded revenues worth $11.65 billion, thereby beating the Zacks Consensus Estimate of $11.41 billion. The full-year revenues however deteriorated from 2019’s $13.63 billion.
Manufacturing revenues decreased 9% in the fourth quarter to $3,654 million while revenues at the Finance division declined 31.6% to $13 million.
Segmental Performance
Textron Aviation: In the quarter under review, revenues at this segment declined 9.8% year over year to $1,560 million. The decline was primarily due to lower Citation jet volume and lower aftermarket volume.
The company delivered 61 jets, down from 71 in the year-ago quarter. It also delivered 61 commercial turboprops, up from 59 in fourth-quarter 2019.
The segment generated operating profit of $108 million in the quarter compared with $134 million earned in the year-ago quarter, owing to lower volume and mix. The order backlog at the end of the quarter was $1.6 billion.
Bell: Revenues from this segment slipped 1% to $871 million, primarily due to lower military volume and commercial volume.
The segment delivered 57 commercial helicopters in the quarter, down from 76 last year.
Segment profits were down 6.8% to $110 million on account of lower volume. Bell’s order backlog at the end of the quarter was $5.3 billion, down $0.4 billion sequentially.
Textron Systems: Revenues at this segment came in at $357 million, down 10.5% the year-ago period. The deterioration can be attributed to lower volume at the TRU Simulation and Training business.
Segmental profits increased 48.5% year over year to $49 million in the fourth quarter due to favorable performance.
Textron Systems’ backlog at the end of the fourth quarter was $2.6 billion, up sequentially.
Industrial: Revenues at this segment declined 6.6% to $866 million due to reduced demand in the ground support equipment business within the Specialized Vehicles product line.
Moreover, segment profit was $55 million compared with $44 million in the previous year quarter. The improvement can be attributed to a favorable impact from pricing and inflation, and favorable performance.
Finance: Revenues at this segment decreased to $13 million from $19 million in the year-ago quarter.
Financials
As of Jan 2, 2021, cash and cash equivalents totaled $2,146 million compared with $1,181 million as of Jan 4, 2020.
Cash flow from operating activities amounted to $833 million at the end of Jan 2, 2021 compared with $960 million at the end of Jan 4, 2020.
Capital expenditures were $317 million during 2020 compared with $339 million in 2019.
Long-term debt was $3,198 million as of Jan 2, 2021, compared with $2,563 million as of Jan 4, 2020.
Guidance
Textron expects to generate adjusted earnings in the range of $2.70-2.90 per share in 2021 on revenues of $12.5 billion. The current Zacks Consensus Estimate for 2021 earnings is pegged at $2.68 per share, lower than the guided range.
The consensus mark for revenues, pegged at $12.58 billion, lies above the guided figure.
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
Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2020 adjusted earnings per share (EPS) of 74 cents outpaced the Zacks Consensus Estimate of 71 cents by 4.2%.
Lockheed Martin (LMT - Free Report) reported fourth-quarter 2020 earnings from continuing operations of $6.38 per share, which came in line with the Zacks Consensus Estimate.
An Upcoming Defense Release
L3Harris Technologies (LHX - Free Report) is scheduled to announce its fourth-quarter results on Jan 29.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
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