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Providence, Rhode Island-based Textron Inc. (TXT) operates in the aircraft, defense, industrial, and finance businesses. Valued at $16.4 billion by market cap, the company provides airplanes, helicopters, weapons, and automotive products. Textron's finance division offers asset-based lending, aviation, distribution, golf, and resort finance, as well as structured capital. The multi-industry company is expected to announce its fiscal third-quarter earnings for 2024 before the market opens on Thursday, Oct. 24.
Ahead of the event, analysts expect TXT to report a profit of $1.50 per share on a diluted basis, up marginally from $1.49 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect TXT to report EPS of $6.18, up 10.6% from $5.59 in fiscal 2023. Its EPS is expected to rise 13.4% year over year to $7.01 in fiscal 2025.
TXT stock has underperformed the S&P 500’s ($SPX) 33.5% gains over the past 52 weeks, with shares up 10.5% during this period. Similarly, it underperformed the Industrial Select Sector SPDR Fund’s (XLI) 34.4% gains over the same time frame.
TXT has faced challenges due to uncertainties in aircraft delivery schedules, slowing demand for business jets, and ongoing supply chain issues affecting the industry as a whole. Additionally, the company has been impacted by issues such as a shortage of skilled labor and increasing fuel costs.
On Jul. 18, TXT shares closed up marginally after reporting its Q2 results. Its adjusted EPS of $1.54 exceeded Wall Street expectations of $1.49. The company’s revenue was $3.5 billion, falling short of Wall Street forecasts of $3.6 billion. TXT expects full-year adjusted EPS to be between $6.20 and $6.40.
Analysts’ consensus opinion on TXT stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 12 analysts covering the stock, six advise a “Strong Buy” rating, five give a “Hold” rating, and one recommends a “Strong Sell.” TXT’s average analyst price target is $102.67, indicating a potential upside of 20.8% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
