Textron Posts Lower-than-Expected Q3 Earnings, Lowers '24 EPS View

Core Insights - Textron Inc. reported third-quarter 2024 adjusted earnings of $1.40 per share, missing the Zacks Consensus Estimate of $1.46 by 4.1% and declining 6% from $1.49 per share in the same quarter last year [1] - Total revenues for Textron were $3.43 billion, falling short of the Zacks Consensus Estimate of $3.51 billion by 2.3%, but showing a 2.5% increase from $3.34 billion in the prior year [2] Financial Performance - GAAP earnings were reported at $1.18 per share, down from $1.35 per share in the third quarter of 2023 [1] - Cash and cash equivalents as of September 28, 2024, totaled $1.29 billion, a decrease from $2.12 billion as of December 30, 2023 [6] - Cash flow from operating activities for the first nine months of 2024 was $561 million, compared to $737 million in the same period last year [6] - Long-term debt stood at $2.88 billion as of September 28, 2024, down from $3.17 billion at the end of 2023 [6] Segment Performance - Textron Aviation revenues were nearly flat at $1.34 billion, with an operating profit of $128 million, down from $160 million year-over-year [3] - Bell segment revenues increased by 23.2% to $929 million, with profits rising 27.3% to $98 million, driven by military revenues and higher commercial volume [3] - Textron Systems revenues decreased by 2.6% to $301 million, with profits down 4.9% to $39 million [4] - Industrial segment revenues fell by 8.9% to $840 million, with profits declining to $32 million from $51 million in the prior year [4] - Textron eAviation reported revenues of $6 million, down 14.3% year-over-year, with a loss of $18 million [4] Guidance and Outlook - Textron revised its 2024 adjusted earnings per share (EPS) outlook to a range of $5.40-$5.60, down from $6.20-$6.40, due to a four-week strike affecting production and delivery [7] - The company also lowered its manufacturing cash flow guidance to $0.65-$0.75 billion from a previous estimate of $0.90-$1.00 billion [7] Market Position - Textron currently holds a Zacks Rank 3 (Hold) [8]