Textron declares 3Q16 earnings
Textron (TXT), a diversified manufacturer of aerospace, defense (XAR) and industrial equipment, announced its 3Q16 earnings on October 20, 2016. The earnings resulted in a price rise of nearly 3.7%, and the stock closed at $39.49 that day.
The stock had fallen ~3% the day Honeywell (HON) came out with a downbeat business update on concerns in the business jet market. Since the impact on Textron’s earnings was not seen as severe, the stock stayed in the green, despite missing earnings and revenue estimates.
Textron’s adjusted earnings per share fell 3.1% YoY (year-over-year) to $0.61 and trailed consensus estimates of $0.66. The company’s earnings were lower, despite the growth in sales due to higher corporate expenses and increased spending on the Scorpion military aircraft.
Including one-time benefits and charges, the GAAP (generally accepted accounting principles) EPS (earnings per share) of the company in the quarter was $1.10. One-time accounts included a $0.76 tax benefit related to US IRS audits and a $0.27 pre-tax restructuring charge.
Textron narrows its full-year guidance
Textron revised its fiscal 2016 EPS guidance from the previous range of $2.60–$2.80 to the new range of $2.65–$2.75. Including one-time benefits, GAAP EPS is expected to be around $3.06–$3.21.
The company undertook a restructuring plan during the quarter that will result in a pre-tax charge of $140 million–$170 million. Textron has thus revised its guidance for manufacturing cash flow before pensions by $100 million to the new range of $500 million–$600 million.