Textron Earnings: Here’s Why the Stock is Falling Now

Textron Inc. (NYSE:TXT) delivered a profit and missed 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 9.68%.

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Textron Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 2.44% to $0.4 in the quarter versus EPS of $0.41 in the year-earlier quarter.

Revenue: Decreased 0.04% to $2.86 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Textron Inc. reported adjusted EPS income of $0.4 per share. By that measure, the company missed the mean analyst estimate of $0.46. It missed the average revenue estimate of $2.89 billion.

Quoting Management: “We saw strong growth in Bell commercial helicopters, Textron Systems defense products, and E-Z-GO vehicles, but demand in the business jet market was softer than expected,” said Textron Chairman and CEO Scott C. Donnelly.

Key Stats (on next page)…

Revenue decreased 15.08% from $3.36 billion in the previous quarter. EPS decreased 20% from $0.50 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.55 and has not changed. For the current year, the average estimate has moved up from a profit of $2.24 to a profit of $2.26 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)