Shares of Textron, Inc. (TXT) gained 2.9% after the company reported strong Q3 results, which surpassed expectations on both earnings and revenue fronts. The American industrial conglomerate engages in a global network of aircraft, defense, industrial and finance businesses.
Quarterly adjusted earnings per share (EPS) grew 60.4% year-over-year to $0.85 and exceeded the Street’s expectations of $0.68.
Third-quarter revenue of $2.99 billion was up 9.3% year-over-year and surpassed the consensus estimate of $2.7 billion. The growth can be attributed to higher revenues from the company’s manufacturing segment. (See Textron stock chart on TipRanks)
Textron Aviation revenue increased $386 million on higher citation jet volume, aftermarket volume and commercial turboprop volume. Textron Aviation backlog at the end of the third quarter was $3.5 billion.
The Chairman and CEO of Textron, Scott C. Donnelly, said, “In the quarter, we saw solid execution, higher manufacturing margin and continued strong cash generation. At Textron Aviation, we continued to see signs of a strong recovery in the general aviation market with a 49% increase in revenues over last year’s third quarter and a $721 million increase in backlog.”
For the Fiscal Year 2021, the company expects adjusted EPS in the range of $3.20 to $3.30. Cash flow from continuing operations is anticipated to be between $1 billion and $1.1 billion, along with planned pension contributions of around $50 million.
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Overall, the Street is bullish on the stock and has a Strong Buy consensus rating based on 7 unanimous Buys. The average Textron price target of $85.71 implies upside potential of about 17.8% from current levels.
TipRanks data shows that financial blogger opinions are 100% Bullish on TXT, compared to a sector average of 70%.
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