Aerospace and defense company Textron (NYSE: TXT) will be reporting earnings this Thursday before market open. Here’s what investors should know.
Textron beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $3.72 billion, up 5.4% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ organic revenue estimates.
Is Textron a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Textron’s revenue to grow 7.1% year on year to $3.67 billion, improving from the 2.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.46 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Textron has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Textron’s peers in the aerospace and defense segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 11.8%, beating analysts’ expectations by 7.4%, and RTX reported revenues up 11.9%, topping estimates by 5.4%. AAR traded up 4.2% following the results.
Read our full analysis of AAR’s results here and RTX’s results here.
Investors in the aerospace and defense segment have had steady hands going into earnings, with share prices up 1.8% on average over the last month. Textron’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $92.31 (compared to the current share price of $83.18).
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