The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Textron missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased.
Gross margins dropped, operating margins expanded, net margins grew.
Textron reported revenue of $3.36 billion. The 10 analysts polled by S&P Capital IQ anticipated sales of $3.42 billion on the same basis. GAAP reported sales were 3.3% higher than the prior-year quarter's $3.25 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 $0.56. The 11 earnings estimates compiled by S&P Capital IQ anticipated $0.58 per share. GAAP EPS were $0.51 for Q4 versus -$0.07 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 8.3%, 320 basis points worse than the prior-year quarter. Operating margin was 7.0%, 570 basis points better than the prior-year quarter. Net margin was 4.4%, 500 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.95 billion. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $12.88 billion. The average EPS estimate is $2.27.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 540 members out of 591 rating the stock outperform, and 51 members rating it underperform. Among 178 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 168 give Textron a green thumbs-up, and 10 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 $30.38.
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