Textron (NYSE: TXT ) reported earnings on July 17. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 29 (Q2), Textron missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Textron booked revenue of $2.84 billion. The nine analysts polled by S&P Capital IQ expected revenue of $3.01 billion on the same basis. GAAP reported sales were 6.0% lower than the prior-year quarter's $3.02 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.47. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.39 per share. Non-GAAP EPS of $0.47 for Q2 were 19% lower than the prior-year quarter's $0.58 per share. GAAP EPS of $0.40 for Q2 were 31% lower than the prior-year quarter's $0.58 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 7.5%, much worse than the prior-year quarter. Operating margin was 6.8%, 280 basis points worse than the prior-year quarter. Net margin was 4.0%, 170 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.06 billion. On the bottom line, the average EPS estimate is $0.54.
Next year's average estimate for revenue is $12.49 billion. The average EPS estimate is $2.02.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 541 members out of 593 rating the stock outperform, and 52 members rating it underperform. Among 165 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 157 give Textron a green thumbs-up, and eight 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 $30.45.
Looking for alternatives to Textron? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Textron to My Watchlist.