Textron (TXT) Q3 Earnings Preview: What You Should Know Beyond the Headline Estimates

Core Insights - Analysts project Textron (TXT) will report quarterly earnings of $1.47 per share, reflecting a 5% year-over-year increase, with revenues expected to reach $3.71 billion, an 8.1% increase from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised upward by 1.8% in the past 30 days, indicating a reassessment by covering analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Analysts predict 'Revenues- Textron eAviation' will reach $9.33 million, a 55.6% increase year-over-year [5] - 'Revenues- Manufacturing- Bell' is expected to be $990.66 million, reflecting a 6.6% year-over-year change [5] - 'Revenues- Manufacturing- Textron systems' is projected at $364.73 million, indicating a 21.2% increase from the prior-year quarter [5] - 'Revenues- Manufacturing- Textron Aviation' is estimated at $1.56 billion, suggesting a 16.7% year-over-year change [6] - 'Revenues- Finance' is expected to be $12.48 million, a 4% increase from the prior-year quarter [6] - Overall, 'Revenues- Manufacturing' is projected at $3.69 billion, reflecting an 8.2% year-over-year increase [6] - 'Revenues- Manufacturing- Industrial' is expected to decline to $766.29 million, an 8.8% decrease year-over-year [7] Segment Profit Estimates - 'Segment Profit- Textron Aviation' is forecasted to reach $196.50 million, up from $128.00 million in the same quarter last year [7] - 'Segment Profit- Bell' is estimated at $89.61 million, down from $98.00 million in the same quarter last year [8] - 'Segment Profit- Textron Systems' is projected at $41.21 million, slightly up from $39.00 million in the same quarter last year [8] - 'Segment Profit- Industrial' is expected to be $35.28 million, compared to $32.00 million a year ago [9] - 'Segment Profit- Manufacturing' is projected to reach $346.17 million, up from $279.00 million in the same quarter last year [9] Stock Performance - Textron shares have shown a return of -2.7% over the past month, contrasting with the Zacks S&P 500 composite's +1.1% change, but the company holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [10]