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.
Textron Inc. (TXT - Free Report) reported first-quarter 2023 adjusted earnings of $1.05 per share, which surpassed the Zacks Consensus Estimate of 95 cents by 10.5%. The bottom line also improved by 8.2% from the year-ago quarter’s figure.
Revenues
Total revenues came in at $3,024 million, which missed the Zacks Consensus Estimate of $3,078 million by 1.8%. However, the reported figure increased 0.8% from the year-ago quarter’s $3,001 million.
Manufacturing revenues improved by 0.9% in the first quarter to $3,012 million, while revenues in the Finance division declined 25% to $12 million.
Textron Aviation: In the quarter under review, revenues in this segment increased 10.5% year over year to $1,149 million. The increase was primarily due to higher defense and aftermarket volumes. The segment delivered 35 jets, down from 39 in the year-ago quarter. It also delivered 34 commercial turboprops, up from 31 in the first quarter of 2022.
The segment generated an operating profit of $125 million in the quarter compared with the $110 million earned in the year-ago quarter due to favorable pricing, net of inflation and the impact of higher volumes.
The order backlog at the end of the quarter was $6.5 billion.
Bell: Revenues in this segment declined 25.5% to $621 million. Lower revenues were mainly due to lower military revenues.
The segment delivered 22 commercial helicopters in the quarter, down from 25 last year. The segment’s profit was down 34.1% to $60 million due to a lower volume and mix. Bell’s order backlog at the end of the quarter was $4.6 billion, down sequentially from $4.8 billion.
Textron Systems: Revenues in this segment came in at $306 million, up 12.1% from the year-ago period. Segmental profits increased 21.4% year over year to $41 million in the first quarter. Textron Systems’ backlog at the end of the first quarter was $2 billion.
Industrial: Revenues in this segment improved by 11.2% to $932 million due to a higher volume and mix at both Textron Specialized Vehicles and Kautex.
Moreover, the segment’s profit was $41 million compared with $39 million in the previous-year quarter. The improvement can be attributed to a higher volume and mix and a favorable impact of pricing, net of inflation, principally in the Specialized Vehicles product line.
Textron eAviation: Revenues in the segment came in at $4 million. Meanwhile, the segment reported a loss of $9 million in the first quarter of 2023.
Finance: Revenues in this segment declined 25% to $12 million. The profit came in at $8 million in the first quarter compared with $9 million in the year-ago period.
Financials
As of Apr 1, 2023, cash and cash equivalents totaled $1,719 million compared with $1,963 million as of Dec 31, 2022. Cash flow from operating activities amounted to $153 million during the three months ended Mar 31, 2023 compared with $225 million in the year-ago period.
Capital expenditures were $62 million for the three months ended Mar 31, 2023 compared with $48 million in the prior-year period. The long-term debt was $2,826 million as of Apr 1, 2023, compared with $3,175 million as of Dec 31, 2022.
Guidance
Textron expects 2023 adjusted net cash from operating activities in the range of $900-$1000 million.
The Boeing Company (BA - Free Report) incurred an adjusted loss of $1.27 per share in the first quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 98 cents. However, the bottom line improved from the year-ago quarter’s loss of $2.75 per share.
Boeing’s revenues amounted to $17.92 billion, which beat the Zacks Consensus Estimate of $17.36 billion by 3.3%. The top line also improved 28% from the year-ago quarter’s reported figure of $13.99 billion.
Hexcel Corporation (HXL - Free Report) reported first-quarter 2023 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 28.2%. The bottom line improved massively from the year-ago earnings of 22 cents per share, highlighting solid growth of 127.3%.
In the quarter under review, the company posted GAAP earnings of 50 cents per share compared with the prior-year quarter’s earnings of 21 cents.
Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2023 adjusted earnings of $6.43 per share, which surpassed the Zacks Consensus Estimate of $6.07 by 5.9%. However, the bottom line was in line with the year-ago quarter's figure.
Net sales amounted to $15.13 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $14.87 billion by 1.9%. The top line rose 1.1% from $14.96 billion in the year-ago quarter.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Textron (TXT) Q1 Earnings Beat Estimates, Revenues Rise Y/Y
Textron Inc. (TXT - Free Report) reported first-quarter 2023 adjusted earnings of $1.05 per share, which surpassed the Zacks Consensus Estimate of 95 cents by 10.5%. The bottom line also improved by 8.2% from the year-ago quarter’s figure.
Revenues
Total revenues came in at $3,024 million, which missed the Zacks Consensus Estimate of $3,078 million by 1.8%. However, the reported figure increased 0.8% from the year-ago quarter’s $3,001 million.
Manufacturing revenues improved by 0.9% in the first quarter to $3,012 million, while revenues in the Finance division declined 25% to $12 million.
Textron Inc. Price, Consensus and EPS Surprise
Textron Inc. price-consensus-eps-surprise-chart | Textron Inc. Quote
Segmental Performance
Textron Aviation: In the quarter under review, revenues in this segment increased 10.5% year over year to $1,149 million. The increase was primarily due to higher defense and aftermarket volumes. The segment delivered 35 jets, down from 39 in the year-ago quarter. It also delivered 34 commercial turboprops, up from 31 in the first quarter of 2022.
The segment generated an operating profit of $125 million in the quarter compared with the $110 million earned in the year-ago quarter due to favorable pricing, net of inflation and the impact of higher volumes.
The order backlog at the end of the quarter was $6.5 billion.
Bell: Revenues in this segment declined 25.5% to $621 million. Lower revenues were mainly due to lower military revenues.
The segment delivered 22 commercial helicopters in the quarter, down from 25 last year. The segment’s profit was down 34.1% to $60 million due to a lower volume and mix. Bell’s order backlog at the end of the quarter was $4.6 billion, down sequentially from $4.8 billion.
Textron Systems: Revenues in this segment came in at $306 million, up 12.1% from the year-ago period. Segmental profits increased 21.4% year over year to $41 million in the first quarter. Textron Systems’ backlog at the end of the first quarter was $2 billion.
Industrial: Revenues in this segment improved by 11.2% to $932 million due to a higher volume and mix at both Textron Specialized Vehicles and Kautex.
Moreover, the segment’s profit was $41 million compared with $39 million in the previous-year quarter. The improvement can be attributed to a higher volume and mix and a favorable impact of pricing, net of inflation, principally in the Specialized Vehicles product line.
Textron eAviation: Revenues in the segment came in at $4 million. Meanwhile, the segment reported a loss of $9 million in the first quarter of 2023.
Finance: Revenues in this segment declined 25% to $12 million. The profit came in at $8 million in the first quarter compared with $9 million in the year-ago period.
Financials
As of Apr 1, 2023, cash and cash equivalents totaled $1,719 million compared with $1,963 million as of Dec 31, 2022. Cash flow from operating activities amounted to $153 million during the three months ended Mar 31, 2023 compared with $225 million in the year-ago period.
Capital expenditures were $62 million for the three months ended Mar 31, 2023 compared with $48 million in the prior-year period. The long-term debt was $2,826 million as of Apr 1, 2023, compared with $3,175 million as of Dec 31, 2022.
Guidance
Textron expects 2023 adjusted net cash from operating activities in the range of $900-$1000 million.
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 Defense Releases
The Boeing Company (BA - Free Report) incurred an adjusted loss of $1.27 per share in the first quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 98 cents. However, the bottom line improved from the year-ago quarter’s loss of $2.75 per share.
Boeing’s revenues amounted to $17.92 billion, which beat the Zacks Consensus Estimate of $17.36 billion by 3.3%. The top line also improved 28% from the year-ago quarter’s reported figure of $13.99 billion.
Hexcel Corporation (HXL - Free Report) reported first-quarter 2023 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 28.2%. The bottom line improved massively from the year-ago earnings of 22 cents per share, highlighting solid growth of 127.3%.
In the quarter under review, the company posted GAAP earnings of 50 cents per share compared with the prior-year quarter’s earnings of 21 cents.
Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2023 adjusted earnings of $6.43 per share, which surpassed the Zacks Consensus Estimate of $6.07 by 5.9%. However, the bottom line was in line with the year-ago quarter's figure.
Net sales amounted to $15.13 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $14.87 billion by 1.9%. The top line rose 1.1% from $14.96 billion in the year-ago quarter.