Textron Inc (TXT) Raises Full-Year EPS Outlook Following Q3 2023 Earnings Release
Textron Inc (NYSE:TXT) reports Q3 2023 earnings per share (EPS) of $1.35, up from $1.06 in Q3 2022.
Adjusted EPS for Q3 2023 stands at $1.49, a 30% increase from the same period last year.
The company returned $235 million to shareholders through share repurchases in Q3 2023.
Full-year adjusted EPS outlook raised to $5.45 - $5.55.
On October 26, 2023, Textron Inc (NYSE:TXT) released its third-quarter earnings report, revealing a significant increase in income from continuing operations compared to the same period last year. The company reported an EPS of $1.35, up from $1.06 in Q3 2022. The adjusted EPS for the third quarter of 2023 was $1.49, marking a 30% increase from $1.15 in Q3 2022.
Financial Highlights
Textron Inc (NYSE:TXT) reported higher overall revenues and net operating profit, driven by growth in the Aviation, Industrial, and Systems sectors. The Aviation sector saw a 12% increase in orders compared to Q3 2022. The company returned $235 million to shareholders through share repurchases in Q3 2023, bringing the year-to-date total to $885 million.
Net cash provided by operating activities of the manufacturing group for the third quarter was $270 million, compared to $356 million last year. Manufacturing cash flow before pension contributions totaled $205 million for the third quarter, compared to $292 million last year.
Outlook
Following the strong performance in Q3 2023, Textron Inc (NYSE:TXT) has raised its full-year adjusted EPS outlook to $5.45 - $5.55, up from the previous outlook of $5.20 - $5.30. The company reiterated its expectation for manufacturing cash flow before pension contributions of $0.9 billion to $1.0 billion, with planned pension contributions of about $50 million.
Segment Results
Textron Aviation's revenues were $1.3 billion, up $171 million from last year's third quarter. Bell revenues in the quarter were $754 million, flat with the third quarter of 2022. Revenues at Textron Systems were $309 million, up $17 million from last year's third quarter. Industrial revenues were $922 million, up $73 million from last year's third quarter.
Conclusion
The Q3 2023 earnings report shows a strong performance by Textron Inc (NYSE:TXT) across its sectors, leading to an optimistic outlook for the full year. The company's decision to return a substantial amount to shareholders through share repurchases further demonstrates its financial strength and commitment to shareholder value.
Explore the complete 8-K earnings release (here) from Textron Inc for further details.
This article first appeared on GuruFocus.
