It has been a couple of month because the final earnings report for Textron (TXT). Shares have misplaced about 7.4% in that time-frame, underperforming the S&P 500.
Will the current adverse pattern proceed main as much as its subsequent earnings launch, or is Textron due for a breakout? Earlier than we dive into how traders and analysts have reacted as of late, let’s take a fast have a look at the newest earnings report to be able to get a greater deal with on the essential drivers.
Textron Posts Higher-Than-Anticipated This autumn Earnings, Misses on Revenues
Textron Inc. reported fourth-quarter 2024 adjusted earnings of $1.34 per share, which beat the Zacks Consensus Estimate of $1.25 by 7.2%. Nevertheless, the underside line declined 16.3% from $1.60 within the year-ago quarter.
The corporate reported GAAP earnings of 76 cents per share, down from $1.61 reported within the fourth quarter of 2023.
The corporate reported 2024 adjusted earnings of $5.48 per share, which surpassed the Zacks Consensus Estimate of $5.42. Nevertheless, the underside line declined 2% from $5.59 reported within the year-ago quarter.
TXT’s Revenues
The corporate reported whole revenues of $3.61 billion, which missed the Zacks Consensus Estimate of $3.74 billion by 3.5%. Furthermore, revenues decreased 7.2% from the year-ago quarter’s degree of $3.89 billion.
Manufacturing revenues improved 7.2% 12 months over 12 months to $3.60 billion.
The corporate reported 2024 revenues of $13.70 billion, which missed the Zacks Consensus Estimate of $13.83 billion. The underside line, nevertheless, improved 0.1% from $13.68 billion within the year-ago quarter.
Segmental Efficiency of Textron
Textron Aviation: Revenues from this phase declined 15.9% 12 months over 12 months to $1.28 billion. This was primarily as a consequence of decrease quantity, which was principally a results of manufacturing disruptions associated to the labor strike.
The phase generated an working revenue of $100 million in contrast with $193 million within the year-ago interval. This decline will be attributed to decrease quantity and blend in addition to manufacturing inefficiencies, which included idle facility prices and better prices related to the labor disruption ensuing from the strike.
Textron Aviation delivered 32 jets, down from 50 within the year-ago quarter. It additionally delivered 38 business turboprops, down from 44 within the fourth quarter of 2023.
The phase’s order backlog on the finish of the quarter totaled $7.8 billion.
Bell: Revenues from this phase amounted to $1,129 million, up 5.4% from the year-ago quarter’s registered quantity. This was pushed by elevated army revenues, primarily associated to the FLRAA program.
The phase’s revenue declined 6.8% to $110 million as a consequence of decrease quantity on the V-22 program.
Bell delivered 78 business helicopters, down from 91 final 12 months. Its order backlog on the finish of the quarter totaled $7.5 billion.
Textron Techniques: This phase’s revenues amounted to $311 million, down 1% from the year-ago quarter’s registered quantity.
The phase’s earnings totaled $42 million, up 20% from the prior-year determine.
Textron Techniques’ backlog on the finish of the quarter totaled $2.6 billion.
Industrial: Revenues from this phase declined 9.6% to $869 million as a consequence of decrease volumes and blend, notably within the Specialised Automobiles product line.
Furthermore, the phase’s revenue totaled $48 million in contrast with $57 million within the prior-year quarter. The decline will be attributed to decrease volumes and blend.
Textron eAviation: Revenues from the phase totaled $11 million, up 10% 12 months over 12 months. It reported a lack of $18 million, narrower than $22 million within the prior-year interval.
Finance: This phase’s revenues declined 8.3% to $11 million. Its revenue totaled $5 million in contrast with $4 million within the year-ago interval.
Textron’s Financials
As of Dec. 28, 2024, money and money equivalents totaled $1.39 billion in contrast with $2.12 billion as of Dec. 30, 2023.
Money circulation from working actions in 2024 amounted to $1.01 billion in contrast with $1.27 billion within the year-ago interval.
Capital expenditures amounted to $153 million in contrast with $178 million within the prior-year interval.
The long-term debt totaled $2.89 billion as of Dec. 28, 2024, in contrast with $3.17 billion as of Dec. 30, 2023.
TXT’s Steering
Textron issued its 2025 adjusted earnings per share (EPS) outlook. The corporate expects adjusted EPS to be within the vary of $6.00-$6.20. The Zacks Consensus Estimate for earnings is pegged at $6.53 per share, which lies above its guided vary.
How Have Estimates Been Transferring Since Then?
Prior to now month, traders have witnessed a downward pattern in recent estimates.
The consensus estimate has shifted -13.26% as a consequence of these adjustments.
VGM Scores
At the moment, Textron has a pleasant Development Rating of B, although it’s lagging so much on the Momentum Rating entrance with a D. Nevertheless, the inventory was allotted a grade of B on the worth aspect, placing it within the high 40% for this funding technique.
General, the inventory has an combination VGM Rating of B. In the event you aren’t centered on one technique, this rating is the one you ought to be fascinated about.
Outlook
Estimates have been broadly trending downward for the inventory, and the magnitude of those revisions signifies a downward shift. It is no shock Textron has a Zacks Rank #5 (Robust Promote). We count on a beneath common return from the inventory within the subsequent few months.
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Textron Inc. (TXT) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
