Net income grew to $563 million or $2.26 per share from $159 million or $0.60 per share last year, reflecting a gain of $1.65 per share from the sale of the Tools & Test product line. Adjusted EPS dropped to $0.61 from $0.65 last year, missing the market estimate of $0.76.
The company saw revenue declines across all its segments due to impacts from various factors while profits results were mixed. In Textron Aviation, revenues and profits benefited from favorable pricing but were hurt by lower volume and mix.
Bell’s segment revenues and profits were helped by favorable performance and higher revenues from military programs but were negatively impacted by commercial mix. In Textron Systems, both revenues and profits declined mainly due to lower TAPV deliveries in Textron Marine & Land Systems and lower volume in the Stimulation, Training & Other product line.
The Industrial and Finance segments also posted declines in revenues and profits with the Industrial segment impacted in particular by the sale of the Tools & Test product line along with unfavorable pricing and performance.
Textron narrowed its adjusted EPS guidance for the full year of 2018. The company expects GAAP EPS from continuing operations to be $4.81 to $4.91. Adjusted EPS is now expected to be $3.20 to $3.30 versus the prior range of $3.15 to $3.35.
Textron reaffirmed its manufacturing cash flow guidance, before pension contributions, in the range of $750 million to $850 million.
During the quarter, Textron returned $468 million to shareholders through share repurchases, compared to $122 million in the prior-year period.
Get access to timely and accurate verbatim transcripts that are published within hours of the event.