The Gory Details on Textron's Double Fumble
Textron (NYS: TXT) reported earnings on Jan. 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Textron missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased.
Gross margins dropped, operating margins expanded, net margins grew.
Textron reported revenue of $3.36 billion. The 10 analysts polled by S&P Capital IQ anticipated sales of $3.42 billion on the same basis. GAAP reported sales were 3.3% higher than the prior-year quarter's $3.25 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 $0.56. The 11 earnings estimates compiled by S&P Capital IQ anticipated $0.58 per share. GAAP EPS were $0.51 for Q4 versus -$0.07 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 8.3%, 320 basis points worse than the prior-year quarter. Operating margin was 7.0%, 570 basis points better than the prior-year quarter. Net margin was 4.4%, 500 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.95 billion. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $12.88 billion. The average EPS estimate is $2.27.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 540 members out of 591 rating the stock outperform, and 51 members rating it underperform. Among 178 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 168 give Textron a green thumbs-up, and 10 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 $30.38.
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The article The Gory Details on Textron's Double Fumble 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. 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.
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