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.
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