Textron Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Textron (NYSE:TXT) will unveil its latest earnings tomorrow, Wednesday, January 23, 2013. Textron is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services.

Textron Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 57 cents per share, a rise of 16.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 60 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 58 cents during the last month. Analysts are projecting profit to rise by 55% versus last year to $2.03.

Past Earnings Performance: Last quarter, the company missed estimates by 4 cents, coming in at net income of 48 cents per share versus a mean estimate of profit of 52 cents per share. In the second quarter, the company beat estimates by 14 cents.

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Stock Price Performance: Between November 16, 2012 and January 16, 2013, the stock price had risen $3.17 (13.7%), from $23.12 to $26.29. The stock price saw one of its best stretches over the last year between December 28, 2012 and January 7, 2013, when shares rose for six straight days, increasing 9.5% (+$2.28) over that span. It saw one of its worst periods between September 19, 2012 and September 26, 2012 when shares fell for six straight days, dropping 7.1% (-$1.99) over that span.

A Look Back: In the third quarter, profit rose 6.3% to $151 million (51 cents a share) from $142 million (47 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 6.6% to $3 billion from $2.81 billion.

Here’s how Textron traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

TXT

Wall St. Revenue Expectations: On average, analysts predict $3.44 billion in revenue this quarter, a rise of 5.8% from the year-ago quarter. Analysts are forecasting total revenue of $12.3 billion for the year, a rise of 9% from last year’s revenue of $11.28 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 4.1% in the fourth quarter of the last fiscal year, 15.2% in the first quarter and 10.7% in the second quarter before increasing again in the third quarter.

Analyst Ratings: With eight analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.72 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)