Textron Stock Falls Despite Earnings Beat
Textron (TXT) shares dropped nearly 8% in early trading on Tuesday despite reporting earnings above analyst expectations. While the company reported non-GAAP earnings of $1.62 per share, its GAAP earnings were lower at $1.42 per share — a modest increase from last year and below the more optimistic non-GAAP figure. Textron also met revenue forecasts with sales of $3.8 billion but showed slower growth compared to Q1, rising just 3%. Free cash flow declined significantly in comparison to the prior-year period, falling from $395 million to $235 million. Additionally, Textron provided full-year guidance slightly below analyst expectations. Investors appeared unimpressed with these results and the company's outlook for GAAP earnings of around $5.49 per share versus a non-GAAP forecast of about $6.50 — highlighting continued concerns over underlying performance.
Tickers: $TXT