Free Research Report as Textron’s Revenue Grew 7%; EPS Soared 95%

Stock Monitor: Northrop Grumman Post Earnings Reporting

LONDON, UK / ACCESSWIRE / May 02, 2018 / Active-Investors.com has just released a free earnings report on Textron Inc. (NYSE: TXT). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=TXT. Textron reported its first quarter fiscal 2018 operating and financial results on April 18, 2018. The industrial manufacturing Company outperformed top- and bottom-line expectations and announced the divestiture of Tell & Tools Business. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Northrop Grumman Corporation (NYSE: NOC), which also belongs to the Industrial Goods sector as the Company Textron. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Textron most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the three months ended March 31, 2018, Textron recorded revenue of $3.30 billion compared to revenue of $3.08 billion in Q1 2017. The Company’s reported numbers beat analysts’ estimates of $3.07 billion.

Textron reported income from continuing operations of $189 million, or $0.72 per share, in Q1 2018 compared to earnings of $101 million, or $0.37 per diluted share, in Q1 2017. The Company had reported $0.46 per share of adjusted income from continuing operations in the year earlier quarter. Textron’s earnings beat Wall Street’s estimates.

Textron’s Segment Results

During Q1 2018, revenues at Textron Aviation segment grew 4% to $1.0 billion compared to revenue of $970 million in Q1 2017, primarily due to higher price and volume. In the reported quarter, the segment delivered 36 jets, up from 35 in the year ago same period; and 29 commercial turboprops, up from 20 in the corresponding year earlier corresponding quarter.

For Q1 2018, Textron Aviation segment’s profit was $72 million, up from $36 million in Q1 2017, due to favorable volume and mix, performance, and price. The segment’s backlog at the end of the reported quarter was $1.6 billion.

During Q1 2018, Textron’s Bell segment’s revenues gained 8% to $752 million compared to revenue of $697 million in Q1 2017, driven by higher military volume, partially offset by lower commercial revenues due to the mix of aircraft sold. The segment delivered 46 commercial helicopters in the reported quarter, up from 27 in the year ago same period. The segment’s profit was $87 million, up $4 million primarily due to the higher volume. Bell backlog at the end of Q1 2018 was $3.6 billion.

For Q1 2018, revenues at Textron Systems were $387 million, down from $416 million in Q1 2017, largely on lower volume at Weapons & Sensors related to the discontinuance of SFW production in FY17. The segment’s profit was $50 million in the reported quarter versus $20 million in the year earlier comparable quarter, primarily reflecting improved performance at Marine and Land. Textron Systems’ backlog at the end of Q1 2018 was $1.4 billion.

For Q1 2018, the Industrial segment’s revenues totaled $1.1 billion compared to $992 million in Q1 2017, largely related to favorable foreign exchange, the Arctic Cat acquisition, and higher volumes across each business line. The segment’s profit was $64 million, down compared to $76 million in the prior year’s corresponding quarter, due to the timing of the Arctic Cat acquisition in the prior year.

Cash Flow

For Q1 2018, Textron’s net cash used by operating activities of continuing operations of the manufacturing group totaled $53 million compared to $165 million in Q1 2017. The Company’s Manufacturing cash flow before pension contributions, reflected a use of cash of $158 million compared to $227 million during the year earlier same quarter.

Divestiture

In the earnings press release, Textron announced that it has reached a definitive agreement to sell its Tools & Test business to Emerson, a global technology and engineering Company, for approximately $810 million in cash.

Included in the sale are all the Textron Tools & Test businesses and brands – Greenlee, Greenlee Communications, Greenlee Utility, HD Electric, Kalyke, Sherman+Reilly, and Endura. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close during Q3 2018. Proceeds from the sale are expected to be used to fund additional share repurchases to offset the earnings impact related to the sale

Share Repurchase Plan

Textron’s Board of Directors also authorized the repurchase of up to 40 million shares of the Company’s common stock which is sufficient for repurchases related to the Tools & Test divestiture as well as to continue Textron’s practice of repurchasing shares to offset the impact of dilution from stock-based compensation and benefit plans, and for opportunistic capital management purposes.

Outlook

For FY18, Textron is forecasting earnings from continuing operations of $2.95 to $3.15 per share and its expectations for cash flow from continuing operations of the manufacturing group before pension contributions is $700 million to $800 million with planned pension contributions of approximately $55 million.

Stock Performance Snapshot

May 01, 2018 – At Tuesday’s closing bell, Textron’s stock was marginally down 0.06%, ending the trading session at $62.10.

Volume traded for the day: 1.94 million shares, which was above the 3-month average volume of 1.93 million shares.

Stock performance in the last month – up 7.72%; previous three-month period – up 3.19%; past twelve-month period – up 34.62%; and year-to-date – up 9.74%

After yesterday’s close, Textron’s market cap was at $16.40 billion.

Price to Earnings (P/E) ratio was at 24.93.

The stock has a dividend yield of 0.13%.

The stock is part of the Industrial Goods sector, categorized under the Aerospace/Defense – Major Diversified industry.

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