Will These Numbers from Textron Be Good Enough for You?

Textron (NYSE: TXT  ) is expected to report Q3 earnings on Oct. 17. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Textron's revenues will increase 9.0% and EPS will grow 13.3%.

The average estimate for revenue is $3.07 billion. On the bottom line, the average EPS estimate is $0.51.

Revenue details
Last quarter, Textron tallied revenue of $3.02 billion. GAAP reported sales were 11% higher than the prior-year quarter's $2.73 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.58. GAAP EPS of $0.58 for Q2 were 107% higher than the prior-year quarter's $0.28 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 19.0%, 180 basis points better than the prior-year quarter. Operating margin was 9.6%, 330 basis points better than the prior-year quarter. Net margin was 5.7%, 240 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $12.43 billion. The average EPS estimate is $2.09.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 533 members out of 584 rating the stock outperform, and 51 members rating it underperform. Among 160 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 151 give Textron a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Textron is outperform, with an average price target of $30.50.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Textron. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2055100, ~/Articles/ArticleHandler.aspx, 10/23/2014 11:56:42 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement