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Textron Meets on Revenues, Misses on EPS

Wednesday - 4/17/2013, 2:00am  ET

Textron reported earnings on April 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 30 (Q1), Textron met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share contracted. GAAP earnings per share increased.

Gross margins dropped, operating margins contracted, net margins grew.

Revenue details
Textron reported revenue of $2.86 billion. The nine analysts polled by S&P Capital IQ expected a top line of $2.89 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.40. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.45 per share. Non-GAAP EPS of $0.40 for Q1 were 2.4% lower than the prior-year quarter's $0.41 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.41 for Q1 were 2.5% higher than the prior-year quarter's $0.40 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 3.7%, much worse than the prior-year quarter. Operating margin was 5.6%, 180 basis points worse than the prior-year quarter. Net margin was 4.2%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $3.11 billion. On the bottom line, the average EPS estimate is $0.55.

Next year's average estimate for revenue is $12.79 billion. The average EPS estimate is $2.27.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 536 members out of 588 rating the stock outperform, and 52 members rating it underperform. Among 162 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 151 give Textron a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Textron is outperform, with an average price target of $31.64.

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This article was originally published as Textron Meets on Revenues, Misses on EPSon Fool.com

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