Textron Inc. (TXT), headquartered in Providence, Rhode Island, is a known multi-industry company recognized for its expertise in aviation, defense, and industrial manufacturing. With a market cap of $14.2 billion, Textron delivers innovative products and services designed to meet the evolving needs of customers worldwide. The company is set to release its Q4 earnings before the market opens on Wednesday, Jan. 22.
Ahead of the event, analysts expect Textron to report a profit of $1.31 per share, down 18.1% from $1.60 in the year-ago quarter. The company missed the consensus estimates in two of the last four quarters while beating on two other occasions.
Its adjusted earnings of $1.40 per share for the last reported quarter missed the consensus estimate by 4.1%. Textron's earnings miss was driven by supply chain disruptions and weaker margins.
For fiscal 2024, analysts expect Textron to report EPS of $5.45, down 2.5% from $5.59 in fiscal 2023. However, in fiscal 2025, EPS is expected to rebound, growing by 20.4% year-over-year to $6.56.
Textron's shares have fallen 5.8% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 23.7% gains and the Industrial Select Sector SPDR Fund’s (XLI) 16.4% rise during the same period.
Textron underperformed due to labor disruptions from a four-week strike at Textron Aviation, which delayed aircraft deliveries and reduced efficiency. On Oct. 24, Textron shares dropped 6.2% following disappointing Q3 earnings results. Revenue for the quarter came in at $3.43 billion, missing Wall Street’s estimate of $3.51 billion but reflecting a 2.5% year-over-year increase. The company has revised its 2024 manufacturing cash flow outlook before pension contributions to a range of $650 million to $750 million, down from the previous projection, with planned pension contributions steady at about $50 million.
Wall Street remains moderately optimistic about Textron, with a consensus “Moderate Buy” rating overall. Of the 13 analysts covering the stock, seven advise a “Strong Buy,” five suggest a “Hold,” and one advises a “Strong Sell.” The mean price target of $97.46 suggests a potential upside of 28.6% from current price levels.
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