What happened

Textron (TXT 1.90%) beat expectations in the current quarter and boosted its full-year guidance. Investors are excited about the opportunity, sending shares of the industrial conglomerate up more than 10%.

So what

Textron is a manufacturer of a range of products from business jets to snowmobiles. The company earned $1.46 per share in the second quarter on revenue of $3.42 billion, beating the estimate for $1.46 per share on $3.41 billion in sales. Revenue was up 8.6% year over year, and the company's 10.3% profit margin represented a 140-basis-point increase from a year ago.

The company's industrial segment was particularly strong thanks to higher volumes and a favorable product mix. Aviation sales fell short of expectations due to lower business jet deliveries year over year, but pricing improved, and the company finished the quarter with about $1.20 worth of orders for every $1 the segment billed in the quarter, a positive sign for future quarters.

Textron generated $314 million in net cash from operations in the quarter, and repurchased $273 million worth of shares.

Now what

Textron raised its earnings expectations for the full year to a range of $5.20 to $5.30 per share, compared to its previous guidance for $5 to $5.20 per share in earnings. Total cash flow is expected to come in between $900 million and $1 billion for the year, before pension contributions, with about $50 million in planned pension contributions ahead.

For years, Textron has struggled to get all its many segments firing at the same time. But the company appears to have some momentum. Its Bell helicopter division bested Lockheed Martin for a massive Army contract to replace the Black Hawk helicopter, a big boost for its defense business, and its Cessna jet business should benefit from a robust period of demand as an aging business jet fleet comes up for replacement.

Textron has tried investors' patience in recent years, with the stock underperforming the S&P 500 by nearly 50 percentage points since 2018. But at long last, it appears the company is finally set up well to gain altitude from here.