Yahoo Finance Will Segmental Performance Boost Textron's (TXT) Q1 Earnings?
Textron Inc. TXT is scheduled to release its first-quarter 2024 earnings on Apr 25 before market open.
The company holds a four-quarter average earnings surprise of 13.53%. Solid revenue performance across the majority of its business segments is likely to have contributed to the overall performance of Textron in the first quarter of 2024.
Textron Aviation, a Key Contributor to Revenues
Solid growth in aftermarket revenues, backed by strong aircraft utilization driven by improved air travel in recent times, as well as solid jet and turboprop deliveries, is likely to have benefited Textron Aviation’s revenue performance in the first quarter.
The Zacks Consensus Estimate for this segment’s revenues in the first quarter is pegged at $1,288.1 million, which indicates an improvement of 12.1% from revenues reported in the year-ago quarter.
Bell’s Performance May Remain Solid
Solid commercial helicopter deliveries and higher military revenues, backed by a ramp-up in the U.S. Army's Future Attack Reconnaissance Aircraft program, are anticipated to bolster the Bell unit’s revenue performance in the first quarter of 2024.
The Zacks Consensus Estimate for the Bell segment’s revenues in the first quarter is pegged at $764.4 million, which indicates growth of 23.1% from revenues reported in the year-ago quarter.
Textron Systems’ Revenues to Remain Robust
Higher sales volumes from all its programs, particularly weapons products, must have added impetus to the Textron Systems unit’s revenue performance in the first quarter of 2024.
The Zacks Consensus Estimate for Textron System’s revenues in the first quarter is pegged at $312.9 million, which suggests an increase of 2.3% reported in the year-ago quarter.
Industrial Unit to Show Strength
A favorable impact of pricing at Textron’s Specialized Vehicles and Kautex product lines is likely to have boosted the Industrial segment’s performance in the soon-to-be-reported quarter. However, lower volumes expected from the Kautex product line might have impacted the overall top line.
The Zacks Consensus Estimate for Industrial’s first-quarter revenues is pegged at $925.7 million, which calls for a decline of 0.7% from the year-ago quarter.
Q1 Estimates
The expected robust revenue performance in the majority of its business segments must have boosted TXT’s overall top line in the first quarter. The Zacks Consensus Estimate for first-quarter revenues is pegged at $3.37 billion, which suggests a rise of 11.4% from the year-ago quarter’s reported figure.
A strong top line, along with the favorable impact of pricing and a favorable operating margin, is likely to have boosted the company’s bottom line in the first quarter of 2024.
The Zacks Consensus Estimate for TXT’s first-quarter earnings is pegged at $1.28 per share. This calls for an improvement of 21.9% from the prior-year reported figure.
In November 2023, Textron announced a restructuring plan that resulted in pretax special charges of $126 million in the fourth quarter. This restructuring plan is expected to be completed in the first half of 2024, which might have caused Textron to incur a pre-tax special charge in the first quarter of 2024.
Backlog Projections Suggest Growth
The strong demand for the company’s products can be gauged by its backlog strength. In this context, our model suggests Textron’s backlog will increase by 4.3% to $13.70 billion in the first quarter of 2024.
Textron Inc. Price and EPS Surprise
Textron Inc. price-eps-surprise | Textron Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for TXT this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.
Earnings ESP: TXT has an Earnings ESP of -2.74%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, TXT carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Below we have mentioned the following players from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.
Huntington Ingalls Industries HII is expected to report its first-quarter 2024 results on May 2 before market open. It has an Earnings ESP of +1.39% and carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for HII’s Q1 earnings is pegged at $3.49 per share, while the same for sales is pegged at $2.80 billion. The company delivered a four-quarter average earnings surprise of 20.64%.
Leidos Holdings, Inc. LDOS is slated to report its first-quarter 2024 results on Apr 30 before market open. It has an Earnings ESP of +1.86% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for LDOS’ Q1 earnings stands at $1.65 per share, which suggests a 12.2% improvement from the first-quarter 2023 reported figure. The Zacks Consensus Estimate for first-quarter sales is pegged at $3.80 billion, which implies a 2.7% increase from that reported in the prior-year quarter.
Curtiss-Wright Corp. CW is set to report first-quarter earnings on May 1. It has an Earnings ESP of +0.23% and carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for CW’s earnings is pegged at $1.75 per share, which calls for a 14.4% improvement from the first-quarter 2023 reported number. The Zacks Consensus Estimate for first-quarter sales is pegged at $665 million, which indicates a 5.4% increase from that reported in the prior-year quarter.
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Textron Inc. (TXT) : Free Stock Analysis Report
Huntington Ingalls Industries, Inc. (HII) : Free Stock Analysis Report
Curtiss-Wright Corporation (CW) : Free Stock Analysis Report
Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report