Textron (NYSE:TXT) Posts Earnings Results, Beats Estimates By $0.08 EPS

Key Points

• Textron reported earnings of $1.55 EPS for the quarter, exceeding analyst estimates by $0.08, despite revenue falling short at $3.60 billion compared to the expected $3.70 billion.
• The company's stock fell by 3.2% to $79.95, with significant trading volume noted at 655,349 shares.
• Textron announced a quarterly dividend of $0.02 per share, with the ex-dividend date set for December 12th, 2023.

Textron (NYSE:TXT - Get Free Report) announced its quarterly earnings results on Thursday. The aerospace company reported $1.55 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.47 by $0.08, Zacks reports. The business had revenue of $3.60 billion during the quarter, compared to the consensus estimate of $3.70 billion. Textron had a net margin of 5.80% and a return on equity of 14.26%. The business's revenue was up 5.1% compared to the same quarter last year. During the same quarter last year, the firm posted $1.40 EPS. Textron updated its FY 2025 guidance to 6.000-6.200 EPS.

Textron Stock Down 3.2%

Shares of TXT traded down $2.63 during mid-day trading on Thursday, reaching $79.95. 655,349 shares of the stock traded hands, compared to its average volume of 1,478,681. The firm has a market cap of $14.25 billion, a price-to-earnings ratio of 18.07, a P/E/G ratio of 1.35 and a beta of 1.13. The stock has a fifty day simple moving average of $82.30 and a 200 day simple moving average of $77.76. Textron has a 12-month low of $57.70 and a 12-month high of $89.28. The company has a quick ratio of 0.84, a current ratio of 1.84 and a debt-to-equity ratio of 0.45.

Textron Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 1st. Stockholders of record on Friday, December 12th will be paid a dividend of $0.02 per share. The ex-dividend date is Friday, December 12th. This represents a $0.08 dividend on an annualized basis and a dividend yield of 0.1%. Textron's dividend payout ratio (DPR) is currently 1.81%.

Insider Activity

In other news, EVP Julie G. Duffy sold 28,543 shares of Textron stock in a transaction that occurred on Friday, July 25th. The shares were sold at an average price of $79.37, for a total transaction of $2,265,457.91. Following the sale, the executive vice president owned 37,624 shares in the company, valued at $2,986,216.88. This trade represents a 43.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.70% of the stock is owned by corporate insiders.

Institutional Trading of Textron

Hedge funds have recently made changes to their positions in the company. Lazard Asset Management LLC purchased a new stake in shares of Textron during the second quarter valued at approximately $62,000. Geneos Wealth Management Inc. increased its stake in shares of Textron by 18.8% in the second quarter. Geneos Wealth Management Inc. now owns 998 shares of the aerospace company's stock worth $80,000 after buying an additional 158 shares during the last quarter. McIlrath & Eck LLC increased its stake in shares of Textron by 1,629.4% in the second quarter. McIlrath & Eck LLC now owns 2,352 shares of the aerospace company's stock worth $189,000 after buying an additional 2,216 shares during the last quarter. B. Riley Wealth Advisors Inc. bought a new stake in shares of Textron in the second quarter worth $356,000. Finally, ICONIQ Capital LLC bought a new stake in shares of Textron in the second quarter worth $372,000. Hedge funds and other institutional investors own 86.03% of the company's stock.

Wall Street Analyst Weigh In

TXT has been the subject of a number of research analyst reports. Barclays increased their price target on shares of Textron from $95.00 to $105.00 and gave the company an "overweight" rating in a report on Tuesday, July 29th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Textron in a report on Wednesday, October 8th. Susquehanna raised their target price on shares of Textron from $90.00 to $95.00 and gave the company a "positive" rating in a report on Friday, July 25th. UBS Group upgraded shares of Textron from a "sell" rating to a "neutral" rating and raised their target price for the company from $73.00 to $88.00 in a report on Monday, July 28th. Finally, The Goldman Sachs Group restated a "neutral" rating and set a $85.00 target price (down from $95.00) on shares of Textron in a report on Tuesday, July 1st. Six analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, Textron presently has a consensus rating of "Hold" and a consensus target price of $92.45.

About Textron

Textron Inc operates in the aircraft, defense, industrial, and finance businesses worldwide. It operates through six segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. The Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft; and offers maintenance, inspection, and repair services, as well as sells commercial parts.

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