Textron Inc (NYSE:TXT) shares are trading higher after the company reported fourth-quarter results.
Sales grew to $3.89 billion, missing the consensus of $3.95 billion, although adjusted EPS of $1.60 (+30% Y/Y) beat the consensus of $1.54.
Textron Aviation’s revenues stood at $1.5 billion, down $58 million Y/Y on lower volume and mix of $158 million. Textron Aviation’s backlog came in at $7.2 billion.
Bell revenues were $1.1 billion, up $255 million Y/Y, on higher commercial revenues of $171 million, mainly led by increased deliveries and higher military revenues of $84 million related to the FLRAA program. Bell backlog stood at $4.8 billion.
Industrial revenues stood at $961 million (up $54 million Y/Y), benefiting from higher volume and mix at Kautex and a favorable pricing at Textron Specialized Vehicles.
For FY23, the operating cash flow of the manufacturing group was $1.3 billion. As of December 31, cash and cash equivalents stood at $2.121 billion.
In November, the company disclosed a restructuring plan, which led to a pre-tax special charges, of $126 million in Q4 and expects it to be substantially completed in the first half of 2024, resulting in annualized cost savings of around $75 million.
In the quarter, Textron returned $283 million to shareholders through share repurchases.
FY24 Outlook: Textron expects GAAP EPS from continuing operations of $5.62-$5.82 or $6.20-$6.40 on an adjusted basis (vs. consensus of $5.90) and revenue of $14.6 billion (vs. $14.68 billion est.).
Textron projects cash flow from continuing operations of the manufacturing group of $1.3 billion and $1.4 billion, with planned pension contributions of about $50 million.
Scott C. Donnelly, Chairman and CEO said, “The 2024 outlook reflects higher revenues, increasing segment profit and operating margin expansion with a continuation of our growth strategy of ongoing investments in new products and programs to drive increases in long-term shareholder value.”
Price Action: TXT shares are up 7.97% at $85.65 on the last check Wednesday.
Photo via Wikimedia Commons
