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Textron Inc TXT

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Stock XNYS Rating as of
$86.51 +1.61 (1.90%)
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As of Delayed Price Post-Trading: $86.75 0.00
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Company Report

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

Nicolas Owens,

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.

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Price vs Fair Value

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TXT is trading at a 11% premium.
Price
$95.28
Fair Value
$63.00
Uncertainty
Medium
1-Star Price
$524.80
5-Star Price
$28.60
Economic Moat
Rvk
Capital Allocation
Wjspgnhg

Bulls Say, Bears Say

Bulls

Textron has a massive opportunity with the Future Vertical Lift contract to become the preeminent military rotorcraft manufacturer for the foreseeable future.

Bears

Textron’s smaller aircraft face increased competition from new entrants in the business jet market, which can challenge pricing and margin

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News

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Trading Information

Previous Close Price
$84.90
Day Range
$84.32–87.21
52-Week Range
$61.27–97.34
Bid/Ask
$86.03 / $88.38
Market Cap
$16.50 Bil
Volume/Avg
2.7 Mil / 1.2 Mil

Key Statistics

Price/Earnings (Normalized)
14.77
Price/Sales
1.22
Dividend Yield (Trailing)
0.09%
Dividend Yield (Forward)
0.09%
Total Yield
6.88%

Company Profile

Textron is a conglomerate that mostly designs, manufactures, and services a range of specialty aircraft including small jets, propeller-driven airplanes, helicopters, and tilt-rotor aircraft. The firm’s aviation segment manufactures and services Cessna and Beechcraft planes. Bell is a helicopter and tilt-rotor manufacturer and servicer for both commercial and military customers. Textron Systems produces uncrewed aircraft and armored vehicles for the military market as well as aircraft simulators and training for the commercial and military markets. Textron Industrial contains the Kautex business that manufactures plastic fuel tanks for conventional and hybrid motor vehicles and other subsidiaries that produce specialized vehicles such as golf carts, snowmobiles, and all-terrain vehicles.
Sector
Industrials
Industry
Aerospace & Defense
Stock Style Box
Mid Core
Total Number of Employees
35,000
Website
https://www.textron.com

Competitors

Valuation

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Metric
TXT
GD
BA
Price/Earnings (Normalized)
 14.7723.39—
Price/Book Value
 2.343.60—
Price/Sales
 1.221.801.33
Price/Cash Flow
 12.7519.4054.48
Price/Earnings
TXT
GD
BA

Financial Strength

Metric
TXT
GD
BA
Quick Ratio
 0.670.760.28
Current Ratio
 1.811.441.14
Interest Coverage
 15.2513.190.18
Quick Ratio
TXT
GD
BA

Profitability

Metric
TXT
GD
BA
Return on Assets (Normalized)
 6.36%6.58%−1.22%
Return on Equity (Normalized)
 15.00%17.44%—
Return on Invested Capital (Normalized)
 10.52%12.06%0.74%
Return on Assets
TXT
GD
BA
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Aerospace & Defense Industry Comparables

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Morningstar Rating for Stocks
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Rolls-Royce Holdings PLC ADRKwhwmplsHxjmx$43.7 Bil

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