Aerospace and defense company Textron (NYSE: TXT) will be announcing earnings results this Tuesday before market open. Here’s what investors should know.
Textron beat analysts’ revenue expectations last quarter, reporting revenues of $3.70 billion, up 11.8% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and full-year EPS guidance meeting analysts’ expectations.
Is Textron a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Textron’s revenue to grow 2.6% year on year, slowing from the 5.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Textron has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Textron’s peers in the aerospace and defense segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 26.1%, beating analysts’ expectations by 3.9%, and RTX reported revenues up 14.5%, topping estimates by 7.8%. AAR traded down 9.8% following the results while RTX was up 9.2%.
Read our full analysis of AAR’s results here and RTX’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the aerospace and defense stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.5% on average over the last month. Textron is up 6% during the same time and is heading into earnings with an average analyst price target of $101.89 (compared to the current share price of $95.53).
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