We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Mixed Segmental Results Boost Textron's (TXT) Q4 Earnings?
Read MoreHide Full Article
Textron Inc. (TXT - Free Report) is scheduled to report fourth-quarter and 2022 results on Jan 25, before market open.
Textron has a four-quarter earnings surprise of 11.14%, on average. Strong revenue performances in Textron Aviation and Bright are expected to have aided overall revenues of Textron.
However, an anticipated poor performance at Bell and Textron System is expected to have partially affected its performance in the fourth quarter.
Textron Aviation Remains a Key Catalyst
A recovery in global air travel is expected to have boosted the demand for Citation jets and commercial turboprops in the fourth quarter, contributing to TXT’s aviation segment’s performance in the fourth quarter. Higher aftermarket volume from increased aircraft utilization is expected to have added an impetus to this segment’s performance in the fourth quarter.
The Zacks Consensus Estimate for the Textron Aviation segment’s revenues in the fourth quarter is pegged at $1,601 million, indicating an improvement of 17.8% from that reported in the year-ago quarter.
Bell’s Performance May Continue to Be a Drag
The Bell segment is likely to have been negatively impacted by lower revenues from the military business, primarily related to lower H-1 production. Higher commercial helicopter demand is anticipated to have favorably contributed to Bell’s revenue performance in the fourth quarter.
The Zacks Consensus Estimate for the Bell segment’s revenues in the fourth quarter is pegged at $801 million, indicating a decline of 6.6% from that reported in the year-ago quarter.
Lower Volumes From Textron Systems is Concerning
The U.S. Army's withdrawal from Afghanistan on its fee-for-service, as well as aircraft support contracts for Textron’s Air Systems, is expected to have led to lower volumes for the Textron Systems unit in the fourth quarter. However, revenues from prior contracts received are anticipated to have boosted the fourth-quarter performance of this segment.
The Zacks Consensus Estimate for the Textron System’s revenues in the fourth quarter is pegged at $340 million, indicating an increase of 8.6% from that reported in the year-ago quarter.
Expectations for the Industrial Unit Bright
Higher volume and mix at Fuel Systems and Functional Components product line may have aided the Industrial unit’s revenue performance in the fourth quarter. The Zacks Consensus Estimate for Textron System’s fourth-quarter revenues is pegged at $849.2 million, indicating an improvement of 8.7% from the year-ago quarter’s reported number.
Considering the mixed segmental performance of TXT, we are optimistic about its overall top-line outcome. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $3.67 billion, suggesting a rise of 10.5% from the year-ago quarter’s reported figure.
Favorable revenue performance is anticipated to have aided the bottom line of the company in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.01 per share, indicating an improvement of 7.5% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for TXT this time around. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.
Textron has an Earnings ESP of -5.14% and a Zacks Rank #3 (Hold) at present. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Stocks to Consider
Here are three defense companies you may want to consider, as these have the right combination of elements to post an earnings beat this season:
Airbus boasts a long-term earnings growth rate of 12.4%. The Zacks Consensus Estimate for EADSY’s third-quarter sales is pegged at $60.8 billion.
Leidos (LDOS - Free Report) has an Earnings ESP of +1.19% and a Zacks Rank #3 at present. LDOS delivered a four-quarter average earnings surprise of 2.01%.
The Zacks Consensus Estimate for Leidos’ fourth-quarter sales is pegged at $3.61 billion, suggesting a growth rate of 3.4% from the prior-year reported figure. The Zacks Consensus Estimate for Leidos’ fourth-quarter earnings implies an improvement of 3.2% from the prior-year reported figure.
Virgin Galactic Holdings(SPCE - Free Report) currently has an Earnings ESP of +1.22% and a Zacks Rank #3. SPCE delivered a four-quarter average negative earnings surprise of 9.01%.
The Zacks Consensus Estimate for Virgin Galactic’s fourth-quarter sales suggests a growth rate of 271.4% from the prior-year reported figure.
Image: Bigstock
Will Mixed Segmental Results Boost Textron's (TXT) Q4 Earnings?
Textron Inc. (TXT - Free Report) is scheduled to report fourth-quarter and 2022 results on Jan 25, before market open.
Textron has a four-quarter earnings surprise of 11.14%, on average. Strong revenue performances in Textron Aviation and Bright are expected to have aided overall revenues of Textron.
However, an anticipated poor performance at Bell and Textron System is expected to have partially affected its performance in the fourth quarter.
Textron Aviation Remains a Key Catalyst
A recovery in global air travel is expected to have boosted the demand for Citation jets and commercial turboprops in the fourth quarter, contributing to TXT’s aviation segment’s performance in the fourth quarter. Higher aftermarket volume from increased aircraft utilization is expected to have added an impetus to this segment’s performance in the fourth quarter.
The Zacks Consensus Estimate for the Textron Aviation segment’s revenues in the fourth quarter is pegged at $1,601 million, indicating an improvement of 17.8% from that reported in the year-ago quarter.
Bell’s Performance May Continue to Be a Drag
The Bell segment is likely to have been negatively impacted by lower revenues from the military business, primarily related to lower H-1 production. Higher commercial helicopter demand is anticipated to have favorably contributed to Bell’s revenue performance in the fourth quarter.
The Zacks Consensus Estimate for the Bell segment’s revenues in the fourth quarter is pegged at $801 million, indicating a decline of 6.6% from that reported in the year-ago quarter.
Lower Volumes From Textron Systems is Concerning
The U.S. Army's withdrawal from Afghanistan on its fee-for-service, as well as aircraft support contracts for Textron’s Air Systems, is expected to have led to lower volumes for the Textron Systems unit in the fourth quarter. However, revenues from prior contracts received are anticipated to have boosted the fourth-quarter performance of this segment.
The Zacks Consensus Estimate for the Textron System’s revenues in the fourth quarter is pegged at $340 million, indicating an increase of 8.6% from that reported in the year-ago quarter.
Expectations for the Industrial Unit Bright
Higher volume and mix at Fuel Systems and Functional Components product line may have aided the Industrial unit’s revenue performance in the fourth quarter. The Zacks Consensus Estimate for Textron System’s fourth-quarter revenues is pegged at $849.2 million, indicating an improvement of 8.7% from the year-ago quarter’s reported number.
Textron Inc. Price and EPS Surprise
Textron Inc. price-eps-surprise | Textron Inc. Quote
Q4 Estimates
Considering the mixed segmental performance of TXT, we are optimistic about its overall top-line outcome. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $3.67 billion, suggesting a rise of 10.5% from the year-ago quarter’s reported figure.
Favorable revenue performance is anticipated to have aided the bottom line of the company in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.01 per share, indicating an improvement of 7.5% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for TXT this time around. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.
Textron has an Earnings ESP of -5.14% and a Zacks Rank #3 (Hold) at present. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Stocks to Consider
Here are three defense companies you may want to consider, as these have the right combination of elements to post an earnings beat this season:
Airbus Group(EADSY - Free Report) currently has an Earnings ESP of +6.25% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Airbus boasts a long-term earnings growth rate of 12.4%. The Zacks Consensus Estimate for EADSY’s third-quarter sales is pegged at $60.8 billion.
Leidos (LDOS - Free Report) has an Earnings ESP of +1.19% and a Zacks Rank #3 at present. LDOS delivered a four-quarter average earnings surprise of 2.01%.
The Zacks Consensus Estimate for Leidos’ fourth-quarter sales is pegged at $3.61 billion, suggesting a growth rate of 3.4% from the prior-year reported figure. The Zacks Consensus Estimate for Leidos’ fourth-quarter earnings implies an improvement of 3.2% from the prior-year reported figure.
Virgin Galactic Holdings(SPCE - Free Report) currently has an Earnings ESP of +1.22% and a Zacks Rank #3. SPCE delivered a four-quarter average negative earnings surprise of 9.01%.
The Zacks Consensus Estimate for Virgin Galactic’s fourth-quarter sales suggests a growth rate of 271.4% from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.