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Will Segmental Sales Aid Textron's (TXT) Earnings in Q2?
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Textron Inc. (TXT - Free Report) is scheduled to report its second-quarter 2023 results on Jul 27 before market open.
Textron has a four-quarter earnings surprise of 10.99%, on average. Strength in revenues across all its business segments is likely to have aided the overall performance of the company in the second quarter of 2023.
Higher Volumes to Boost Textron Aviation
Enhanced defense and aftermarket volumes are likely to boost Textron Aviation’s revenue performance in the second quarter.
The Zacks Consensus Estimate for this segment’s revenues in the second quarter is pegged at $1,398.5 million, indicating an improvement of 8.9% from revenues reported in the year-ago quarter.
Bell’s Performance May Show Strength
Solid customer activity across all its commercial products is anticipated to bolster the Bell unit’s revenue performance in the second quarter of 2023.
The Zacks Consensus Estimate for the Bell segment’s revenues in the second quarter is pegged at $755.2 million, indicating growth of 9.9% from revenues reported in the year-ago quarter.
Textron Systems’ Revenues to Improve
Higher volumes from all its programs must have contributed to Textron Systems’ revenue performance in the second quarter of 2023.
The Zacks Consensus Estimate for Textron System’s revenues in the second quarter is pegged at $311.6 million, suggesting an increase of 6.3% reported in the year-ago quarter.
Industrial Unit to Remain Robust
Higher volumes in Specialized Vehicles and Kautex are likely to have continued to elevate this segment’s performance in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for Industrial’s second-quarter revenues is pegged at $918.2 million, indicating an improvement of 5.4% from the year-ago quarter.
Q2 Estimates
Anticipated strong revenue performance across all its business segments reinforces the expectation of a favorable overall revenue performance. The Zacks Consensus Estimate for second-quarter revenues is pegged at $3.39 billion, suggesting a rise of 7.5% from the year-ago quarter.
A robust top line is expected to have positively impacted the company’s bottom line in the second quarter of 2023.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.20 per share. This calls for an improvement of 20% from the prior-year reported figure.
The strong demand for its products can be gauged by its backlog strength. In this context, our model suggests Textron’s backlog to increase by 14.5% to $15.05 billion in the second quarter of 2023.
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 -4.01% 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:
The Zacks Consensus Estimate for Embraer’s second-quarter earnings, pegged at 12 cents per share, indicates a decline of 42.9% from the prior-year reported figure. The Zacks Consensus Estimate for ERJ’s sales suggests a growth rate of 14.3% from the prior-year reported figure.
Huntington Ingalls Industries (HII - Free Report) has an Earnings ESP of +0.48% and a Zacks Rank #3. HII delivered a four-quarter average earnings surprise of 8.09%.
The Zacks Consensus Estimate for the company’s second-quarter sales is pegged at $2.73 billion, suggesting a growth rate of 2.5% from the prior-year reported figure. The Zacks Consensus Estimate for its second-quarter earnings implies a decline of 29.3% from the prior-year reported figure.
L3Harris Technologies (LHX - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank #3. LHX delivered a four-quarter average negative earnings surprise of 0.37%.
The Zacks Consensus Estimate for the company’s second-quarter sales is pegged at $4.34 billion, suggesting a growth rate of 4.9% from the prior-year reported figure. The Zacks Consensus Estimate for its second-quarter earnings stands at $2.91 per share.
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Will Segmental Sales Aid Textron's (TXT) Earnings in Q2?
Textron Inc. (TXT - Free Report) is scheduled to report its second-quarter 2023 results on Jul 27 before market open.
Textron has a four-quarter earnings surprise of 10.99%, on average. Strength in revenues across all its business segments is likely to have aided the overall performance of the company in the second quarter of 2023.
Higher Volumes to Boost Textron Aviation
Enhanced defense and aftermarket volumes are likely to boost Textron Aviation’s revenue performance in the second quarter.
The Zacks Consensus Estimate for this segment’s revenues in the second quarter is pegged at $1,398.5 million, indicating an improvement of 8.9% from revenues reported in the year-ago quarter.
Bell’s Performance May Show Strength
Solid customer activity across all its commercial products is anticipated to bolster the Bell unit’s revenue performance in the second quarter of 2023.
The Zacks Consensus Estimate for the Bell segment’s revenues in the second quarter is pegged at $755.2 million, indicating growth of 9.9% from revenues reported in the year-ago quarter.
Textron Systems’ Revenues to Improve
Higher volumes from all its programs must have contributed to Textron Systems’ revenue performance in the second quarter of 2023.
The Zacks Consensus Estimate for Textron System’s revenues in the second quarter is pegged at $311.6 million, suggesting an increase of 6.3% reported in the year-ago quarter.
Industrial Unit to Remain Robust
Higher volumes in Specialized Vehicles and Kautex are likely to have continued to elevate this segment’s performance in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for Industrial’s second-quarter revenues is pegged at $918.2 million, indicating an improvement of 5.4% from the year-ago quarter.
Q2 Estimates
Anticipated strong revenue performance across all its business segments reinforces the expectation of a favorable overall revenue performance. The Zacks Consensus Estimate for second-quarter revenues is pegged at $3.39 billion, suggesting a rise of 7.5% from the year-ago quarter.
A robust top line is expected to have positively impacted the company’s bottom line in the second quarter of 2023.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.20 per share. This calls for an improvement of 20% from the prior-year reported figure.
Textron Inc. Price and EPS Surprise
Textron Inc. price-eps-surprise | Textron Inc. Quote
Backlog Projections Suggest Growth
The strong demand for its products can be gauged by its backlog strength. In this context, our model suggests Textron’s backlog to increase by 14.5% to $15.05 billion in the second quarter of 2023.
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 -4.01% 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 +25.00% and a Zacks Rank #3. The long-term earnings growth rate of ERJ is 17%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Embraer’s second-quarter earnings, pegged at 12 cents per share, indicates a decline of 42.9% from the prior-year reported figure. The Zacks Consensus Estimate for ERJ’s sales suggests a growth rate of 14.3% from the prior-year reported figure.
Huntington Ingalls Industries (HII - Free Report) has an Earnings ESP of +0.48% and a Zacks Rank #3. HII delivered a four-quarter average earnings surprise of 8.09%.
The Zacks Consensus Estimate for the company’s second-quarter sales is pegged at $2.73 billion, suggesting a growth rate of 2.5% from the prior-year reported figure. The Zacks Consensus Estimate for its second-quarter earnings implies a decline of 29.3% from the prior-year reported figure.
L3Harris Technologies (LHX - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank #3. LHX delivered a four-quarter average negative earnings surprise of 0.37%.
The Zacks Consensus Estimate for the company’s second-quarter sales is pegged at $4.34 billion, suggesting a growth rate of 4.9% from the prior-year reported figure. The Zacks Consensus Estimate for its second-quarter earnings stands at $2.91 per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.