Textron Q3 Earnings Beat Estimates Aided By 49% Aviation Revenue Growth

  • Textron Inc. TXT reported third-quarter FY21 sales growth of 9.3% year-over-year to $2.99 billion, beating the consensus of $2.68 billion.
  • Revenue by segments: Textron Aviation $1.18 billion (+48.6% Y/Y), Bell $769 million (-3% Y/Y), Textron Systems $299 million (-1% Y/Y) and Industrial $730 million (-12.3% Y/Y).
  • Adjusted EPS of $0.85 (compared to $0.53 a year ago) topped the consensus of $0.66.
  • The segment profit increased to $279 million from $189 million a year ago, and the margin expanded by 242 bps to 9.33%.
  • Income from continuing operations increased 60.9% Y/Y to $185 million.
  • Textron generated cash from operating activities of $401 million, compared to $352 million a year ago.
  • Net cash provided by operating activities of continuing operations of the manufacturing group was $333 million versus $368 million last year.
  • Backlog at the end of the quarter for Aviation was $3.5 billion, Bell was $4.1 billion, and Textron Systems was $2.2 billion.
  • During the quarter, Textron returned $299 million to shareholders through share repurchases.
  • FY21 Outlook: Textron expects EPS from continuing operations of $3.17 - $3.29 (prior view $2.97 - $3.21), and adjusted EPS of $3.20 - $3.30 (prior $3.00 - $3.20) versus analysts' consensus of $2.84.
  • It also expects cash flow from continuing operations of the manufacturing group before pension contributions of $1 billion - $1.1 billion.
  • Price Action: TXT shares traded higher by 2.64% at $72.6 on the last check Thursday.

Posted In: BriefsEarningsNewsGuidanceMoversTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.