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Textron Inc. (TXT - Free Report) reported second-quarter 2023 adjusted earnings of $1.46 per share, which surpassed the Zacks Consensus Estimate of $1.20 by 21.7%. The bottom line also improved by 31.5% from the year-ago quarter’s figure.
The company reported GAAP earnings of $1.30 per share, up from $1 generated in the second quarter of 2022.
Revenues
Total revenues came in at $3,424 million, which surpassed the Zacks Consensus Estimate of $3,389.4 million by 1%. Moreover, the reported figure increased 8.6% from the year-ago quarter’s $3,154 million.
Manufacturing revenues improved 8.5% year over year in the second quarter to $3,406 million, while revenues in the Finance division surged 28.6% to $18 million.
Textron Aviation: In the quarter under review, revenues in this segment increased 6.1% year over year to $1,362 million. The increase was primarily driven by higher pricing.
The segment generated an operating profit of $171 million in the quarter compared with the $149 million earned in the year-ago quarter due to favorable pricing, net of inflation.
The segment delivered 44 jets, down from 48 in the year-ago quarter. It also delivered 37 commercial turboprops, up from 35 in the second quarter of 2022.
The segment’s order backlog at the end of the quarter was $6.8 billion.
Bell: Revenues in this segment rose 2% to $701 million, driven by higher pricing.
The segment’s profit was up 20.4% to $65 million driven by lower research and development costs, and a favorable impact from pricing, net of inflation.
The segment delivered 35 commercial helicopters in the quarter, up from 34 last year. Bell’s order backlog at the end of the quarter was $5.6 billion, up sequentially from $4.6 billion.
Textron Systems: Revenues in this segment came in at $306 million, up 4.4% from the year-ago period, driven by higher volume.
Segmental profits declined 2.6% year over year to $37 million in the second quarter.
Textron Systems’ backlog at the end of the second quarter was $1.9 billion.
Industrial: Revenues in this segment improved 17.8% to $1,026 million, driven by a higher volume and mix at both Kautex and Textron Specialized Vehicles as well as favorable impact from pricing.
Moreover, the segment’s profit was $79 million compared with $37 million in the previous-year quarter. The improvement can be attributed to a higher volume and mix as well as a favorable impact from pricing, net of inflation.
Textron eAviation: Revenues in the segment came in at $11 million, up 120% year over year. Meanwhile, the segment reported a loss of $12 million in the second quarter of 2023 compared with a loss of $7 million incurred in the prior year quarter.
Finance: Revenues in this segment improved 28.6% to $18 million. The segment’s profit came in at $12 million in the second quarter compared with $10 million in the year-ago period.
Financials
As of Jul 1, 2023, cash and cash equivalents totaled $1,695 million compared with $1,963 million as of Dec 31, 2022. Cash flow from operating activities amounted to $467 million as of Jul 1, 2023, compared with $589 million in the year-ago period.
Capital expenditures were $83 million for the second quarter compared with $66 million in the prior-year period.
The long-term debt was $2,825 million as of Jul 1, 2023, compared with $3,175 million as of Dec 31, 2022.
Guidance
Textron has raised its 2023 adjusted earnings per share to the range of $5.20-$5.30 from earlier guidance range of $5.00-$5.20. The Zacks Consensus Estimate for TXT’s 2023 earnings, pegged at $5.09, lies below the company’s guided range.
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2023 adjusted earnings of $6.73 per share, which surpassed the Zacks Consensus Estimate of $6.43 by 4.7%. The bottom line also improved 6.5% from the year-ago quarter's figure.
Net sales amounted to $16.69 billion, which surpassed the Zacks Consensus Estimate of $15.86 billion by 5.3%. The top line rose 8.1% from $15.45 billion registered in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2023 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 48 cents by 4.2%. The bottom line improved 51.5% from the year-ago quarter’s level of 33 cents.
Net sales totaled $454 million, which beat the Zacks Consensus Estimate of $445 million by 2.2%. Also, the top line witnessed an improvement of 15.6% from the year-ago quarter’s $393 million.
Raytheon Technologies Corporation’s (RTX - Free Report) second-quarter 2023 adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate of $1.17 by 10.3%. The bottom line also improved 11% from the year-ago quarter’s level of $1.16.
Sales of $18,315 million beat the Zacks Consensus Estimate of $17,543 million by 4.4%. The figure also rose 12.3% from $16,314 million recorded in the year-ago period.
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Textron (TXT) Q2 Earnings Beat Estimates,'23 EPS View Raised
Textron Inc. (TXT - Free Report) reported second-quarter 2023 adjusted earnings of $1.46 per share, which surpassed the Zacks Consensus Estimate of $1.20 by 21.7%. The bottom line also improved by 31.5% from the year-ago quarter’s figure.
The company reported GAAP earnings of $1.30 per share, up from $1 generated in the second quarter of 2022.
Revenues
Total revenues came in at $3,424 million, which surpassed the Zacks Consensus Estimate of $3,389.4 million by 1%. Moreover, the reported figure increased 8.6% from the year-ago quarter’s $3,154 million.
Manufacturing revenues improved 8.5% year over year in the second quarter to $3,406 million, while revenues in the Finance division surged 28.6% to $18 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 6.1% year over year to $1,362 million. The increase was primarily driven by higher pricing.
The segment generated an operating profit of $171 million in the quarter compared with the $149 million earned in the year-ago quarter due to favorable pricing, net of inflation.
The segment delivered 44 jets, down from 48 in the year-ago quarter. It also delivered 37 commercial turboprops, up from 35 in the second quarter of 2022.
The segment’s order backlog at the end of the quarter was $6.8 billion.
Bell: Revenues in this segment rose 2% to $701 million, driven by higher pricing.
The segment’s profit was up 20.4% to $65 million driven by lower research and development costs, and a favorable impact from pricing, net of inflation.
The segment delivered 35 commercial helicopters in the quarter, up from 34 last year. Bell’s order backlog at the end of the quarter was $5.6 billion, up sequentially from $4.6 billion.
Textron Systems: Revenues in this segment came in at $306 million, up 4.4% from the year-ago period, driven by higher volume.
Segmental profits declined 2.6% year over year to $37 million in the second quarter.
Textron Systems’ backlog at the end of the second quarter was $1.9 billion.
Industrial: Revenues in this segment improved 17.8% to $1,026 million, driven by a higher volume and mix at both Kautex and Textron Specialized Vehicles as well as favorable impact from pricing.
Moreover, the segment’s profit was $79 million compared with $37 million in the previous-year quarter. The improvement can be attributed to a higher volume and mix as well as a favorable impact from pricing, net of inflation.
Textron eAviation: Revenues in the segment came in at $11 million, up 120% year over year. Meanwhile, the segment reported a loss of $12 million in the second quarter of 2023 compared with a loss of $7 million incurred in the prior year quarter.
Finance: Revenues in this segment improved 28.6% to $18 million. The segment’s profit came in at $12 million in the second quarter compared with $10 million in the year-ago period.
Financials
As of Jul 1, 2023, cash and cash equivalents totaled $1,695 million compared with $1,963 million as of Dec 31, 2022. Cash flow from operating activities amounted to $467 million as of Jul 1, 2023, compared with $589 million in the year-ago period.
Capital expenditures were $83 million for the second quarter compared with $66 million in the prior-year period.
The long-term debt was $2,825 million as of Jul 1, 2023, compared with $3,175 million as of Dec 31, 2022.
Guidance
Textron has raised its 2023 adjusted earnings per share to the range of $5.20-$5.30 from earlier guidance range of $5.00-$5.20. The Zacks Consensus Estimate for TXT’s 2023 earnings, pegged at $5.09, lies below the company’s guided range.
Zacks Rank
Textron currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Q2 Defense Earnings
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2023 adjusted earnings of $6.73 per share, which surpassed the Zacks Consensus Estimate of $6.43 by 4.7%. The bottom line also improved 6.5% from the year-ago quarter's figure.
Net sales amounted to $16.69 billion, which surpassed the Zacks Consensus Estimate of $15.86 billion by 5.3%. The top line rose 8.1% from $15.45 billion registered in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2023 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 48 cents by 4.2%. The bottom line improved 51.5% from the year-ago quarter’s level of 33 cents.
Net sales totaled $454 million, which beat the Zacks Consensus Estimate of $445 million by 2.2%. Also, the top line witnessed an improvement of 15.6% from the year-ago quarter’s $393 million.
Raytheon Technologies Corporation’s (RTX - Free Report) second-quarter 2023 adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate of $1.17 by 10.3%. The bottom line also improved 11% from the year-ago quarter’s level of $1.16.
Sales of $18,315 million beat the Zacks Consensus Estimate of $17,543 million by 4.4%. The figure also rose 12.3% from $16,314 million recorded in the year-ago period.