Textron Shares Surge 14% Following Third Quarter Earnings Beat
Textron (TXT) shares rose significantly after the aerospace and defense company reported third-quarter earnings that exceeded analyst expectations. The company reported non-GAAP earnings of $1.76 per share, surpassing the projected $1.43, while revenue met expectations at $3.8 billion. Despite a slight discrepancy between non-GAAP and GAAP earnings ($1.56), year-over-year profitability rose 19%. Growth was primarily driven by a 16% increase in Textron Systems armored vehicle sales and a 14% rise in commercial aviation. These gains helped offset a 9% decline in the Bell helicopter division. The company's cash position remains strong, with free cash flow reaching $410 million, representing a 51% year-over-year increase. Following these results, Textron raised its full-year guidance for both GAAP profits and free cash flow. While the market reacted positively to the earnings beat and improved outlook, some analysts note that the stock's valuation may be high relative to projected five-year earnings growth.
Tickers: $TXT
Topics: aerospace and defense earnings beat free cash flow guidance upgrade revenue growth