Textron stock holds steady as Bernstein reiterates Market Perform rating

Investing.com - Bernstein SocGen Group has reiterated its Market Perform rating and $90.00 price target on Textron (NYSE:TXT) following the company’s second-quarter earnings report. According to InvestingPro data, Textron currently appears undervalued based on its Fair Value analysis, with the stock trading at a P/E ratio of 18.3x while maintaining strong profitability metrics.

Textron reported diluted earnings per share of $1.35 on Thursday, exceeding the consensus estimate of $1.25. Revenue came in at $3.72 billion, also surpassing analyst expectations of $3.64 billion.

Despite the earnings beat, Textron maintained its 2025 EPS guidance as a higher tax rate offset the better-than-expected second-quarter performance. The company did raise its 2025 cash guidance from $900 million to $1.0 billion, citing R&D tax credits.

Textron Aviation posted a quarterly book-to-bill ratio of 99% with revenues up 25%, which Bernstein viewed positively regarding bookings amid investor concerns about demand. Management commentary on demand further supported this outlook.

Bell, another Textron division, reported a book-to-bill ratio of 85%, though Bernstein noted this metric is less significant for Bell due to its dependence on large order tranches, particularly for the Future Long-Range Assault Aircraft (FLRAA) program.

In other recent news, Textron Inc . reported impressive financial results for the second quarter of 2025. The company achieved an earnings per share (EPS) of $1.55, surpassing analysts’ expectations of $1.45. This represents a 6.9% surprise above projections. Additionally, Textron’s revenue reached $3.7 billion, exceeding forecasts by 1.65%. Despite the positive earnings and revenue results, the company’s stock experienced a premarket decline. These developments highlight Textron’s strong performance in the quarter.

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