Textron (NYS: TXT) reported earnings on Oct. 17. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Textron missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Gross margins dropped, operating margins increased, net margins were steady.
Textron logged revenue of $3.00 billion. The 11 analysts polled by S&P Capital IQ expected to see net sales of $3.06 billion on the same basis. GAAP reported sales were 6.6% higher than the prior-year quarter's $2.81 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 $0.48. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.51 per share. GAAP EPS of $0.51 for Q3 were 8.5% higher than the prior-year quarter's $0.47 per share. (The prior-year quarter included $0.02 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 9.4%, 740 basis points worse than the prior-year quarter. Operating margin was 8.1%, 20 basis points better than the prior-year quarter. Net margin was 5.0%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $3.50 billion. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $12.40 billion. The average EPS estimate is $2.08.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 534 members out of 585 rating the stock outperform, and 51 members rating it underperform. Among 163 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 152 give Textron a green thumbs-up, and 11 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 $31.07.
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The article Textron Increases Sales but Misses Estimates on Earnings originally appeared on Fool.com.
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. TMFDisclosureHere