Street Calls of the Week
PROVIDENCE - On Thursday, Textron Inc. (NYSE:TXT) reported third quarter adjusted earnings that exceeded analyst expectations, benefitting from higher aircraft deliveries and military program acceleration.
The aviation and defense manufacturer’s shares were up 1.11% in pre-market trading after the announcement.
The company posted adjusted earnings per share of $1.55 for the third quarter, beating the analyst consensus of $1.46. Revenue rose 5% to $3.6 billion compared to the same period last year, though slightly below the consensus estimate of $3.7 billion.
"Overall, third quarter revenue was up 5% for Textron with higher revenues at Aviation, Bell, and Textron Systems," said Textron Chairman and CEO Scott C. Donnelly. "Higher Aviation deliveries, acceleration of MV-75 at Bell, and solid performance at Systems all contributed to a strong quarter."
Textron Aviation, which manufactures Cessna and Beechcraft aircraft, saw a 10% revenue increase to $1.5 billion, driven by higher jet and turboprop deliveries. The segment delivered 42 jets, up from 41 in the third quarter of 2024, and 39 commercial turboprops, a significant increase from 25 in the year-ago period.
Bell revenues increased 10% to $1.0 billion, primarily due to higher military volume from the U.S. Army’s MV-75 program, though commercial helicopter deliveries fell to 30 from 44 a year earlier. The Bell backlog grew by $1.3 billion to $8.2 billion, reflecting new MV-75 program awards.
Manufacturing cash flow before pension contributions totaled $281 million for the quarter, up from $147 million last year. The company repurchased $206 million in shares during the period.
Textron reiterated its full-year 2025 guidance for adjusted earnings of $6.00 to $6.20 per share, in line with the analyst consensus of $6.12, and maintained its manufacturing cash flow forecast of $900 million to $1.0 billion.
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