Textron Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Textron (NYS: TXT) reported earnings on April 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Textron beat expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.


Gross margins dropped, operating margins increased, and net margins improved.

Revenue details
Textron chalked up revenue of $2.86 billion. The eight analysts polled by S&P Capital IQ expected a top line of $2.71 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $2.48 billion.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.41. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.35 per share on the same basis. GAAP EPS of $0.40 for Q1 were 344% higher than the prior-year quarter's $0.09 per share.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 9.1%, 660 basis points worse than the prior-year quarter. Operating margin was 7.4%, 400 basis points better than the prior-year quarter. Net margin was 4.1%, 290 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.99 billion. On the bottom line, the average EPS estimate is $0.44.

Next year's average estimate for revenue is $12.37 billion. The average EPS estimate is $1.94.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 535 members out of 588 rating the stock outperform, and 53 members rating it underperform. Among 171 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 162 give Textron a green thumbs-up, and nine 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 $29.15.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Textron. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement