Textron (TXT) Q3 Earnings and Revenues Lag Estimates

Company Performance - Textron reported quarterly earnings of $1.40 per share, missing the Zacks Consensus Estimate of $1.46 per share, and down from $1.49 per share a year ago, representing an earnings surprise of -4.11% [1] - The company posted revenues of $3.43 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 2.27%, and compared to year-ago revenues of $3.34 billion [1] - Over the last four quarters, Textron has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [1] Stock Performance and Outlook - Textron shares have increased by about 8% since the beginning of the year, while the S&P 500 has gained 21.5% [2] - The company's earnings outlook is crucial for investors, as empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions [3] - The current consensus EPS estimate for the coming quarter is $1.89 on $4.11 billion in revenues, and for the current fiscal year, it is $6.10 on $14.22 billion in revenues [4] Industry Context - The Aerospace - Defense industry, to which Textron belongs, is currently in the top 25% of over 250 Zacks industries, indicating a favorable outlook [5] - Another company in the same industry, Huntington Ingalls, is expected to report quarterly earnings of $3.84 per share, with a year-over-year change of +3.8% [5]