Morgan Stanley Sees 2Q14 Beat Raises Chances Of FY14 Guidance Beat For Textron

In a report published Thursday, Morgan Stanley analyst John D. Godyn reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “2Q14 EPS beat of $0.51 was above our est. of $0.45 and cons. of $0.46. TXT's consolidated 2Q14 result slightly outperformed our revenue estimate and total operating margin of 7.0% outperformed our 6.6% estimate – summing to drive a $19M operating income beat vs. our estimate though $16M of the beat was the ARH settlement TXT's Bell segment booked in the quarter. Despite positive tone on execution across its segments, mgmt reiterated 2014 guidance of $1.92 - $2.12 raising the probability that TXT comes in at the high end of its 2014 guidance as long as its revenue projections are met, in our view.” Textron closed on Wednesday at $39.00.