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Textron's (TXT) Q4 Earnings Top Estimates, Revenues Rise Y/Y
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Textron Inc. (TXT - Free Report) reported fourth-quarter 2019 adjusted earnings of $1.11 per share, which surpassed the Zacks Consensus Estimate of $1.08 by 2.8%. The bottom line however declined 3.5% from $1.15 in the year-ago quarter.
Including a one-time special charge, the company posted GAAP earnings of 87 cents per share compared with $1.02 generated in the year-ago-quarter.
This year-over-year decline can be attributed to lower segment profit recorded by the company in the quarter under review.
For 2019, Textron generated adjusted earnings of $3.50 per share, which missed the Zacks Consensus Estimate of $3.71 by 5.7%. The bottom line also declined 27.5% from $4.83 last year.
Total revenues came in at $4,035 million, which surpassed the Zacks Consensus Estimate of $3,856 million by 4.6%. Moreover, the reported figure increased 7.6% from the year-ago quarter’s $3,750 million on higher contributions from the company’s segments, except Industrial segments.
Manufacturing revenues increased 7.6% to $4,016 million, while revenues at the Finance division grew 5.6% to $19 million.
Segmental Performance
Textron Aviation: In the quarter under review, revenues at this segment rose 11.4% to $1,729 million from $1,552 million in the year-ago quarter. The growth can be attributed to higher volume and mix.
The company delivered 71 jets, up from 63 in the year-ago quarter. It also delivered 59 commercial turboprops, down from 67 in fourth-quarter 2018. The segment registered profits of $134 million in the quarter, up from $170 million in the year-ago quarter, owing to the mix of products sold and an unfavorable impact from inflation, net of pricing. The order backlog at the end of the quarter was $1.7 billion.
Bell: Revenues from this segment were $961 million, up 16.2% from the year-ago quarter’s $827 million, primarily due to higher commercial volume.
The segment delivered 76 commercial helicopters in the quarter, up from 46 last year.
Segment profits were up 9.3% to $118 million on account of higher commercial volume. Bell’s order backlog at the end of the quarter was $6.9 billion, up $1.3 billion sequentially.
Textron Systems: Revenues at this segment came in at $399 million, up from $345 million a year ago. The downside can be primarily attributed to higher volume.
Segmental profits decreased 10.8% year over year to $33 million in the fourth quarter.
Textron Systems’ backlog at the end of the fourth quarter was $1.2 billion, lower than $1.4 billion at the end of the previous quarter.
Industrial: Revenues at this segment declined 8% to $927 million, primarily due to lower volume and mix, primarily at Textron Specialized Vehicles.
Moreover, segmental profits declined from $73 million in the fourth quarter of 2018 to $44 million on account of lower volume at Textron Specialized Vehicles.
Finance: Revenues at this segment increased to $19 million from $18 million in the year-ago quarter. Segmental profits increased by $2 million from fourth-quarter 2018.
Financials
As of Jan 4, 2020, cash and cash equivalents totaled $1,181 million compared with $987 million as of Dec 29, 2018.
Cash inflow from operating activities amounted to $960 million at the end of 2019 compared with cash inflow of $1,127 million at the end of the prior-year period.
Capital expenditures were $339 million in 2019 compared with $369 million in 2018.
Long-term debt was $2,563 million as of Jan 4, 2020, compared with $2,808 million as of Dec 29, 2018.
Guidance
Textron issued its guidance for 2020. The company currently expects full-year earnings from continuing operations in the range of $3.5-$3.7 per share.
The Zacks Consensus Estimate for current-year earnings is $3.61, which lies just above the midpoint of the guided range.
Textron also gave its expectation for manufacturing cash flow before pension contributions in the range of $700-$800 million.
Teledyne Technologies Inc. (TDY - Free Report) reported fourth-quarter 2019 adjusted earnings of $2.90 per share, which surpassed the Zacks Consensus Estimate of $2.76 by 5.1%.
Lockheed Martin (LMT - Free Report) reported fourth-quarter 2019 earnings of $5.29 per share, which surpassed the Zacks Consensus Estimate of $4.99 by 6%.
Upcoming Defense Release
General Dynamics Corp. (GD - Free Report) is scheduled to release fourth-quarter 2019 results on Jan 30.
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Textron's (TXT) Q4 Earnings Top Estimates, Revenues Rise Y/Y
Textron Inc. (TXT - Free Report) reported fourth-quarter 2019 adjusted earnings of $1.11 per share, which surpassed the Zacks Consensus Estimate of $1.08 by 2.8%. The bottom line however declined 3.5% from $1.15 in the year-ago quarter.
Including a one-time special charge, the company posted GAAP earnings of 87 cents per share compared with $1.02 generated in the year-ago-quarter.
This year-over-year decline can be attributed to lower segment profit recorded by the company in the quarter under review.
For 2019, Textron generated adjusted earnings of $3.50 per share, which missed the Zacks Consensus Estimate of $3.71 by 5.7%. The bottom line also declined 27.5% from $4.83 last year.
Textron Inc. Price, Consensus and EPS Surprise
Textron Inc. price-consensus-eps-surprise-chart | Textron Inc. Quote
Revenues
Total revenues came in at $4,035 million, which surpassed the Zacks Consensus Estimate of $3,856 million by 4.6%. Moreover, the reported figure increased 7.6% from the year-ago quarter’s $3,750 million on higher contributions from the company’s segments, except Industrial segments.
Manufacturing revenues increased 7.6% to $4,016 million, while revenues at the Finance division grew 5.6% to $19 million.
Segmental Performance
Textron Aviation: In the quarter under review, revenues at this segment rose 11.4% to $1,729 million from $1,552 million in the year-ago quarter. The growth can be attributed to higher volume and mix.
The company delivered 71 jets, up from 63 in the year-ago quarter. It also delivered 59 commercial turboprops, down from 67 in fourth-quarter 2018.
The segment registered profits of $134 million in the quarter, up from $170 million in the year-ago quarter, owing to the mix of products sold and an unfavorable impact from inflation, net of pricing. The order backlog at the end of the quarter was $1.7 billion.
Bell: Revenues from this segment were $961 million, up 16.2% from the year-ago quarter’s $827 million, primarily due to higher commercial volume.
The segment delivered 76 commercial helicopters in the quarter, up from 46 last year.
Segment profits were up 9.3% to $118 million on account of higher commercial volume. Bell’s order backlog at the end of the quarter was $6.9 billion, up $1.3 billion sequentially.
Textron Systems: Revenues at this segment came in at $399 million, up from $345 million a year ago. The downside can be primarily attributed to higher volume.
Segmental profits decreased 10.8% year over year to $33 million in the fourth quarter.
Textron Systems’ backlog at the end of the fourth quarter was $1.2 billion, lower than $1.4 billion at the end of the previous quarter.
Industrial: Revenues at this segment declined 8% to $927 million, primarily due to lower volume and mix, primarily at Textron Specialized Vehicles.
Moreover, segmental profits declined from $73 million in the fourth quarter of 2018 to $44 million on account of lower volume at Textron Specialized Vehicles.
Finance: Revenues at this segment increased to $19 million from $18 million in the year-ago quarter. Segmental profits increased by $2 million from fourth-quarter 2018.
Financials
As of Jan 4, 2020, cash and cash equivalents totaled $1,181 million compared with $987 million as of Dec 29, 2018.
Cash inflow from operating activities amounted to $960 million at the end of 2019 compared with cash inflow of $1,127 million at the end of the prior-year period.
Capital expenditures were $339 million in 2019 compared with $369 million in 2018.
Long-term debt was $2,563 million as of Jan 4, 2020, compared with $2,808 million as of Dec 29, 2018.
Guidance
Textron issued its guidance for 2020. The company currently expects full-year earnings from continuing operations in the range of $3.5-$3.7 per share.
The Zacks Consensus Estimate for current-year earnings is $3.61, which lies just above the midpoint of the guided range.
Textron also gave its expectation for manufacturing cash flow before pension contributions in the range of $700-$800 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
Teledyne Technologies Inc. (TDY - Free Report) reported fourth-quarter 2019 adjusted earnings of $2.90 per share, which surpassed the Zacks Consensus Estimate of $2.76 by 5.1%.
Lockheed Martin (LMT - Free Report) reported fourth-quarter 2019 earnings of $5.29 per share, which surpassed the Zacks Consensus Estimate of $4.99 by 6%.
Upcoming Defense Release
General Dynamics Corp. (GD - Free Report) is scheduled to release fourth-quarter 2019 results on Jan 30.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>