Textron Inc. (NYSE:TXT) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Textron Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 31.03% to $0.40 in the quarter versus EPS of $0.58 in the year-earlier quarter.
Revenue: Decreased 5.96% to $2.84 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Textron Inc. reported adjusted EPS income of $0.40 per share. By that measure, the company beat the mean analyst estimate of $0.38. It missed the average revenue estimate of $3.01 billion.
Quoting Management: “Despite weakness in European markets, we saw solid growth at Textron Systems and our Industrial businesses, as well as continued strong commercial orders at Bell,” said Textron Chairman and CEO Scott C. Donnelly. “On the other hand, business jet demand continued to be soft, but we believe the cost, production and pricing actions we took are the right actions to support future growth at Cessna.”
Key Stats (on next page)…
Revenue decreased 0.56% from $2.86 billion in the previous quarter. EPS were the same at $0.40 as the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.55 to a profit $0.54. For the current year, the average estimate has moved down from a profit of $2.10 to a profit of $2.02 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)