Textron Earnings: Here’s What’s Moving the Stock Now

Textron Inc. (NYSE:TXT) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.66%.

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Textron Inc. Earnings Cheat Sheet

Results: Net income increased to $148 million (56 cents per diluted share) in the quarter versus a net loss of $19 million in the year-earlier quarter.

Revenue: Rose 3.26% to $3.36 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Textron Inc. reported adjusted net income of 56 cents per share. By that measure, the company met the mean analyst estimate of $0.56. It missed the average revenue estimate of $3.42 billion.

Outlook: Textron is forecasting 2013 revenues of approximately $12.9 billion, up about 6% from 2012. Earnings per share from continuing operations are expected to be in the range of $2.10 to $2.30. Cash flow from continuing operations of the manufacturing group before pension contributions is estimated to be between $500 and $550 million with planned pension contributions of about $200 million.

Key Stats:

Revenue increased 12% from $3 billion in the previous quarter. Net income decreased 1.99% from $151 million in 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 $0.48 to a profit $0.45. For the current year, the average estimate has moved down from a profit of $2.06 to a profit of $2.02 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)