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Textron (TXT) Q1 Earnings Beat Estimates, Revenues Rise Y/Y

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Textron Inc. TXT reported first-quarter 2021 adjusted earnings of 70 cents per share, which exceeded the Zacks Consensus Estimate of 47 cents by 48.9%. The bottom line also improved 100% from 35 cents in the year-ago quarter.

Including one-time items, the company posted GAAP earnings of 75 cents per share compared with 22 cents generated in the year-ago quarter.

This year-over-year improvement can be attributed higher revenues as well as segment profit generated in the first quarter.

Textron Inc. Price, Consensus and EPS Surprise

Textron Inc. Price, Consensus and EPS Surprise
Textron Inc. Price, Consensus and EPS Surprise

Textron Inc. price-consensus-eps-surprise-chart | Textron Inc. Quote

Revenues

Total revenues came in at $2,879 million, which beat the Zacks Consensus Estimate of $2,741 million by 5%. The reported figure also improved 3.7% from the year-ago quarter’s $2,777 million on higher contributions from the company’s Bell and Industrial segments.

Manufacturing revenues increased 3.7% to $2,864 million. Revenues at the Finance division improved 7.1% to $15 million.

Segmental Performance

Textron Aviation: In the quarter under review, revenues at this segment slipped 0.8% to $865 million from $872 million in the year-ago quarter. The decline was primarily due to lower volume, primarily reflecting lower aftermarket volume.

The company delivered 28 jets, up from 23 in the year-ago quarter. It also delivered 14 commercial turboprops, down from 16 in first-quarter 2020.

The segment generated profit of $47 million in the quarter compared with $3 million earned in the year-ago quarter, driven by a favorable impact from performance of $25 million and a favorable mix of products sold.

The order backlog at the end of the quarter was $2.1 billion.

Bell: Revenues from this segment were $846 million, up 2.8% from the year-ago quarter’s $823 million, primarily due to higher commercial revenues.

The segment delivered 17 commercial helicopters in the quarter, up from 15 in last year’s quarter.

Segment profits were down 8.7% to $105 million on account of favorable performance. Bell’s order backlog at the end of the quarter was $5.2 billion, down $0.5 billion sequentially.

Textron Systems: Revenues at this segment came in at $328 million, flat year over year.

Segmental profits increased 96.2% year over year to $51 million in the first quarter.

Textron Systems’ backlog at the end of the first quarter was $2.4 billion, up $0.5 billion sequentially.

Industrial: Revenues at this segment improved 11.5% to $825 million, primarily due to higher volume and mix of $47 million and a favorable impact of $20 million from pricing, primarily in the Specialized Vehicles product line. Also, foreign exchange rate fluctuations benefited revenues.

Moreover, segment profit was $47 million compared with $9 million in the previous-year quarter owing to higher volume and mix.

Finance: Revenues at this segment increased to $15 million from $14 million in the year-ago quarter.

Financials

As of Apr 3, 2021, cash and cash equivalents totaled $1,897 million compared with $2,146 million as of Jan 2, 2021.

Cash flow from operating activities amounted to $107 million at the end of the first quarter against cash outflow of $393 million at the end of the prior-year period.

Capital expenditures were $53 million in first-quarter 2021 compared with $50 million in first-quarter 2020.

Long-term debt was $3,183 million as of Apr 3, 2021, compared with $3,198 million as of Jan 2, 2021.

Zacks Rank

Textron currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Lockheed Martin LMT reported first-quarter 2021 earnings of $6.56 per share, which surpassed the Zacks Consensus Estimate of $6.32 by 3.8%. The bottom line also improved 7.9% from the year-ago quarter’s $6.08.

Hexcel Corporation HXL reported first-quarter 2021 loss of 10 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 16 cents.

Raytheon Technologies Corporation’s RTX first-quarter 2021 adjusted earnings per share (EPS) of 90 cents outpaced the Zacks Consensus Estimate of 88 cents by 2.3%.

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