Textron Posts Lower-than-Expected Q3 Earnings, Lowers '24 EPS View
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Textron Inc. TXT reported third-quarter 2024 adjusted earnings of $1.40 per share, which missed the Zacks Consensus Estimate of $1.46 by 4.1%. The bottom line also declined 6% from $1.49 per share in the year-ago quarter.
The company reported GAAP earnings of $1.18 per share, down from $1.35 per share reported in the third quarter of 2023.
TXT’s Revenues
TXT reported total revenues of $3.43 billion, which missed the Zacks Consensus Estimate of $3.51 billion by 2.3%. However, revenues increased 2.5% from the year-ago quarter’s level of $3.34 billion.
Manufacturing revenues improved 2.6% year over year to $3.42 billion.
Textron Inc. Price, Consensus and EPS Surprise
Textron Inc. price-consensus-eps-surprise-chart | Textron Inc. Quote
Segmental Performance of Textron
Textron Aviation: Revenues from this segment were almost flat year over year at $1.34 billion. This was primarily due to higher pricing, offset by lower volume and mix.
The segment generated an operating profit of $128 million compared with $160 million in the year-ago period. This decline can be attributed to the lower volume and mix.
Textron Aviation delivered 41 jets, up from 39 in the year-ago quarter. It also delivered 25 commercial turboprops, down from 38 in the third quarter of 2023.
The segment’s order backlog at the end of the quarter totaled $7.6 billion.
Bell: Revenues from this segment amounted to $929 million, up 23.2% from the year-ago quarter’s number. This was driven by increased military revenues, primarily related to the FLRAA program, along with higher commercial volume and mix, reflecting an increase in deliveries.
The segment’s profit improved a solid 27.3% to $98 million, driven by the favorable impact of performance and pricing.
Bell delivered 44 commercial helicopters, up from 23 in the last year. Its order backlog at the end of the quarter totaled $6.5 billion.
Textron Systems: This segment’s revenues were $301 million, down 2.6% from the year-ago quarter’s number, owing to lower volumes.
The segment’s profits were $39 million, down 4.9% from the previous year’s figure.
Textron Systems’ backlog at the end of the quarter totaled $1.9 billion.
Industrial: Revenues from this segment declined 8.9% to $840 million due to lower volumes and mix, notably in the Specialized Vehicles product line.
Moreover, the segment’s profit totaled $32 million compared with $51 million in the prior-year quarter. The decline can be attributed to lower volumes and mix.
Textron eAviation: Revenues from the segment totaled $6 million, down 14.3% year over year. It reported a loss of $18 million, narrower than the reported loss of $19 million in the prior-year period.
Finance: This segment’s revenues declined 7.7% to $12 million. Its profit totaled $5 million compared with $22 million in the year-ago period.