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Will Segment Results Boost Textron's (TXT) Q1 Earnings?
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Textron Inc. (TXT - Free Report) is scheduled to report its first-quarter 2023 results on Apr 27, before market open.
Textron has a four-quarter earnings surprise of 13.91%, on average. Strong revenue performance across all its business segments is expected to have aided the overall revenue performance of Textron in the first quarter of 2023.
Textron Aviation Remains a Key Catalyst
Higher aftermarket volume from increased aircraft utilization and strong pricing is expected to have benefited Textron aviation unit’s performance in the first quarter.
The Zacks Consensus Estimate for this segment’s revenues in the first quarter is pegged at $1,171.3 million, indicating an improvement of 12.6% from revenues reported in the year-ago quarter.
Bell’s Performance May Continue to be Weak
Lower revenues from the military business, primarily related to lower H-1 production, may have dampened Bell’s revenue performance in the first quarter. Higher commercial revenue may have benefited this unit’s performance in the first quarter.
The Zacks Consensus Estimate for the Bell segment’s revenues in the first quarter is pegged at $768.1 million, indicating a decline of 7.9% from revenues reported in the year-ago quarter.
Contracts to Boost Textron Systems’ Revenues
Strong contract awards might have favorably contributed to Textron Systems’ revenue performance in the first quarter of 2023.
The Zacks Consensus Estimate for Textron System’s revenues in the first quarter is pegged at $282.2 million, indicating an increase of 3.3% reported in the year-ago quarter.
Industrial Unit to Post Revenue Growth
Higher volume at both Caltex and Specialized Vehicles, as well as favorable pricing, may have aided the Industrial unit’s revenue performance in the first quarter. The Zacks Consensus Estimate for Industrial’s first-quarter revenues is pegged at $851.8 million, indicating an improvement of 1.6% from the year-ago quarter.
Considering the strong revenue growth across most of the company’s business segments, we remain optimistic about its overall top-line outcome. The Zacks Consensus Estimate for first-quarter revenues is pegged at $3.08 billion, suggesting a rise of 2.7% from the year-ago quarter.
Favorable revenue performance may have aided the bottom-line performance of the company in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 90 cents per share, indicating an improvement of 2.3% 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. The combination of a positive Earnings ESP and 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 -11.47% and a Zacks Rank #3. 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:
Embraer has a four-quarter average earnings surprise of 105.32%. The Zacks Consensus Estimate for ERJ’s first-quarter sales indicates an improvement of 16.7% from the prior-year reported figure.
Spirit Aerosystems (SPR - Free Report) has an Earnings ESP of +16.58% and a Zacks Rank #3. Spirit Aerosystems delivered a four-quarter average negative earnings surprise of 157.65%.
The Zacks Consensus Estimate for SPR’s first-quarter sales is pegged at $1.48 billion, indicating an improvement of 25.8% from the prior-year reported figure.
Raytheon Technologies (RTX - Free Report) has an Earnings ESP of +3.60% and a Zacks Rank #2. The long-term earnings growth rate of RTX is pegged at 8.3%.
The Zacks Consensus Estimate for Raytheon’s first-quarter earnings, pegged at $1.11 per share, indicates a decline of 3.5% from the prior-year reported figure. The Zacks Consensus Estimate for RTX’s sales suggests a growth rate of 7.3% from the prior-year reported figure.
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Will Segment Results Boost Textron's (TXT) Q1 Earnings?
Textron Inc. (TXT - Free Report) is scheduled to report its first-quarter 2023 results on Apr 27, before market open.
Textron has a four-quarter earnings surprise of 13.91%, on average. Strong revenue performance across all its business segments is expected to have aided the overall revenue performance of Textron in the first quarter of 2023.
Textron Aviation Remains a Key Catalyst
Higher aftermarket volume from increased aircraft utilization and strong pricing is expected to have benefited Textron aviation unit’s performance in the first quarter.
The Zacks Consensus Estimate for this segment’s revenues in the first quarter is pegged at $1,171.3 million, indicating an improvement of 12.6% from revenues reported in the year-ago quarter.
Bell’s Performance May Continue to be Weak
Lower revenues from the military business, primarily related to lower H-1 production, may have dampened Bell’s revenue performance in the first quarter. Higher commercial revenue may have benefited this unit’s performance in the first quarter.
The Zacks Consensus Estimate for the Bell segment’s revenues in the first quarter is pegged at $768.1 million, indicating a decline of 7.9% from revenues reported in the year-ago quarter.
Contracts to Boost Textron Systems’ Revenues
Strong contract awards might have favorably contributed to Textron Systems’ revenue performance in the first quarter of 2023.
The Zacks Consensus Estimate for Textron System’s revenues in the first quarter is pegged at $282.2 million, indicating an increase of 3.3% reported in the year-ago quarter.
Industrial Unit to Post Revenue Growth
Higher volume at both Caltex and Specialized Vehicles, as well as favorable pricing, may have aided the Industrial unit’s revenue performance in the first quarter. The Zacks Consensus Estimate for Industrial’s first-quarter revenues is pegged at $851.8 million, indicating an improvement of 1.6% from the year-ago quarter.
Textron Inc. Price and EPS Surprise
Textron Inc. price-eps-surprise | Textron Inc. Quote
Q1 Estimates
Considering the strong revenue growth across most of the company’s business segments, we remain optimistic about its overall top-line outcome. The Zacks Consensus Estimate for first-quarter revenues is pegged at $3.08 billion, suggesting a rise of 2.7% from the year-ago quarter.
Favorable revenue performance may have aided the bottom-line performance of the company in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 90 cents per share, indicating an improvement of 2.3% 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. The combination of a positive Earnings ESP and 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 -11.47% and a Zacks Rank #3. 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:
Embraer S.A. (ERJ - Free Report) has an Earnings ESP of +116.7% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Embraer has a four-quarter average earnings surprise of 105.32%. The Zacks Consensus Estimate for ERJ’s first-quarter sales indicates an improvement of 16.7% from the prior-year reported figure.
Spirit Aerosystems (SPR - Free Report) has an Earnings ESP of +16.58% and a Zacks Rank #3. Spirit Aerosystems delivered a four-quarter average negative earnings surprise of 157.65%.
The Zacks Consensus Estimate for SPR’s first-quarter sales is pegged at $1.48 billion, indicating an improvement of 25.8% from the prior-year reported figure.
Raytheon Technologies (RTX - Free Report) has an Earnings ESP of +3.60% and a Zacks Rank #2. The long-term earnings growth rate of RTX is pegged at 8.3%.
The Zacks Consensus Estimate for Raytheon’s first-quarter earnings, pegged at $1.11 per share, indicates a decline of 3.5% from the prior-year reported figure. The Zacks Consensus Estimate for RTX’s sales suggests a growth rate of 7.3% from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.