Stock in the Spotlight: Textron Inc. (NYSE:TXT)

Textron Inc. (NYSE:TXT) reported earnings for the three months ended Mar2016 on April 20, 2016. The company earned $0.55 per share on revenue of $3.2B. Analysts had been modeling earning per share of $0.53 with $3.15B in revenue.

Textron Inc. (NYSE:TXT) reported first quarter 2016 income from continuing operations of $0.55 per share, up 19.6 percent from $0.46 per share in the first quarter of 2015.

Revenues in the quarter were $3.2 billion, up 4.2 percent from the first quarter of 2015. Textron segment profit in the quarter was $280 million, up $21 million from the first quarter of 2015. First quarter manufacturing cash flow before pension contributions reflected a use of cash of $222 million compared to a use of cash of $125 million during last year’s first quarter.

“Increased revenues reflected growth at Industrial, Aviation and Systems, with relatively flat revenues at Bell, consistent with our expectations,” said Textron Chairman and CEO Scott C. Donnelly. “Operationally, we achieved margin improvements at each of our manufacturing segments.”

First Quarter Segment Results

Textron Aviation

Revenues at Textron Aviation were up $40 million, primarily due to higher jet volume.

Textron Aviation delivered 34 new jets and 26 King Air turboprops in the quarter, compared to 33 jets and 25 King Airs in last year’s first quarter.

Textron Aviation recorded a segment profit of $73 million in the first quarter compared to $67 million a year ago.

Textron Aviation backlog at the end of the first quarter was $1.0 billion, down $47 million from the end of the fourth quarter.

Bell

Bell revenues were up $1 million, as Bell delivered 6 V-22’s in the quarter, flat with last year’s first quarter, 10 H-1’s compared to 4 H-1’s last year and 30 commercial helicopters, compared to 35 units last year.

Segment profit was up $6 million, primarily due to improved performance.

Bell backlog at the end of the first quarter was $5.3 billion, up $60 million from the end of the fourth quarter.

Textron Systems

Revenues at Textron Systems increased $9 million, primarily due to higher volume in the Unmanned Systems product line, while segment profit was up $1 million.

Textron Systems’ backlog at the end of the first quarter was $2.5 billion, up $196 million from the end of the fourth quarter.

Textron Inc. earnings per share showed an increasing trend of 16.6% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 300%.Analysts project EPS growth over the next 5 years at 12.96%. It has EPS annual growth over the past 5 fiscal years of 52.5% when sales grew 5. It reported 4.2% sales growth, and 21.1% EPS growth in the last quarter.

The stock is trading at $38.06, up 24.09% from 52-week low of $30.69. The stock trades down -18.18% from its peak of $46.59 and 21.57% above the consensus price target of $46.27. Its volume clocked up at 1.45 million shares which is lower than the average volume of 2.24 million shares. Its market capitalization currently stands at $10.28B.