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The Zacks Analyst Blog Highlights: Textron, Lockheed Martin, The Boeing Company, United Technologies and Raytheon

Zacks Equity Research

For Immediate Release

Chicago, IL – October 28, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Textron Inc. TXT, Lockheed Martin Corp. LMT, The Boeing Company BA, United Technologies, Corp. UTX and Raytheon Company RTN.

Here are highlights from Friday’s Analyst Blog:

Defense Stock Roundup: TXT, LMT, BA & More

Following impressive Q3 numbers, the major indices of the Aerospace-Defense space ended in the green over the trailing five trading sessions. Notably, the S&P 500 Aerospace & Defense (Industry) index rose 2%, while the Dow Jones U.S. Aerospace & Defense index gained 3% in the aforementioned time period.

In the past week, quarterly results from a number of Aerospace-Defense majors namely, Textron Inc., Lockheed Martin Corp., The Boeing Company, United Technologies, Corp. and Raytheon Company drew investors’ focus.

Recap of Past Week’s Important Stories

1.    Textron’s third-quarter 2019 earnings from continuing operations of 95 cents per share surpassed the Zacks Consensus Estimate by 11.8% and also increased 55.7% on a year over year basis. However, quarterly revenues of $3,259 million fell short of the Zacks Consensus Estimate by 2.7%. However, the top line rose 1.8% year over year.

The company’s cash inflow from operating activities amounted to $238 million at the end of the third quarter compared with cash inflow of $319 million at the end of the prior-year period.

Textron slashed its guidance for 2019 (read more: Textron's Q3 Earnings Beat Estimates, Revenues Miss).

2.    Lockheed Martin’s third-quarter 2019 earnings of $5.66 per share surpassed the Zacks Consensus Estimate by 12.5% and improved 10.1% on a year-over-year basis. Its net sales amounted to $15.17 billion, which outshined the Zacks Consensus Estimate by 1.3% and increased 6% year over year.

Lockheed Martin ended the third quarter (on Sep 29, 2019) with $137.4 billion in backlog, up 0.5% from $136.7 billion at the end of second-quarter 2019.

The company’s cash from operations at the end of third-quarter 2019 amounted to $5.82 billion compared with $0.92 billion a year ago. For 2019, Lockheed Martin partially raised its financial guidance (read more: Lockheed Martin Beats on Q3 Earnings, Ups '19 EPS View).

3.    Boeing’s adjusted earnings of $1.45 per share for third-quarter 2019 missed the Zacks Consensus Estimate by 28.9% and also declined 59% on a year-over-year basis. Its revenues amounted to $19.98 billion, which surpassed the Zacks Consensus Estimate by 3.3%. The top line however plunged 21% year over year.

The company’s backlog at the end of third-quarter 2019 slipped to $470 billion from $474 billion at the end of second-quarter 2019.

Boeing’s operating cash outflow at the end of the third quarter was $0.26 billion against cash inflow of $12.38 billion at the end of third quarter of 2018 (read more: Boeing Q3 Earnings Miss, Down Y/Y on Lower 737 Deliveries).

4.    United Technologies’ third-quarter 2019 adjusted earnings of $2.21 per share surpassed the Zacks Consensus Estimate of $2.03. The bottom line was also higher than the year-ago figure of $1.93. Its revenues came in at $19,496 million, up 18.1% year over year. The top line also outpaced the consensus estimate of $19,313 million.

During the reported quarter, the company generated $2,490 million cash from operating activities compared with $1,762 million reported a year ago.

The company revised 2019 earnings guidance to $8.05-$8.15 per share from $7.90-$8.05 projected earlier (read more: United Technologies Q3 Earnings & Revenues Top, Up Y/Y).

5.    Raytheon’s third-quarter 2019 earnings per share of $3.08 from continuing operations surpassed the Zacks Consensus Estimate by 8.1% and improved a solid 36.9% on a year-over-year basis. Its third-quarter sales of $7,446 million increased 9.4% year over year and exceeded the Zacks Consensus Estimate by 2.6%.

The company’s bookings totaled $9,439 million compared with $8,710 million in the year-ago quarter, reflecting an improvement of 8.4%.

Cash flow from operating activities amounted to $1,690 million at the end of third-quarter 2019 compared with $995 million at the end of third-quarter 2018. Raytheon partially raised its financial guidance for 2019 (read more: Raytheon Q3 Earnings Top, Improve Y/Y, EPS View Up).

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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