Textron Earnings: Earnings Miss and Program Cancellations Don’t Change Long-Term Outlook

No-moat-rated Textron missed FactSet consensus expectations for both revenue and earnings per share in the first quarter of 2024, with demand softening in its industrial segment. Revenue was up 4% year over year to $3.1 billion, although below consensus estimates of $3.3 billion. Disappointed investors drove the shares down around 11% after market open. After factoring in first-quarter results and adjusting our forecast for margins in the underperforming industrials segment, we adjusted our fair value estimate to $84 from $86.