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Textron beats Q4 EPS estimate by 17 cents

Textron (TXT) shares gained 0.6% during pre-market trading on Thursday after the company reported better-than-expected fourth quarter earnings of $1.15 per share, primarily driven by a strong aviation segment. Analysts had projected 98 cents per share for the quarter.

Meanwhile, total revenue declined 6% year-over-year to $3.75 billion, missing analysts’ target of $3.92 billion. Revenues saw modest declines in Textron Systems, Bell and Industrial units, which was partly offset by a 12% jump in the core aviation segment.

Textron Q2 2018 earnings infographic

Revenues at Textron Aviation were up 12% to $1.6 billion, due to higher volume and mix across the jet and commercial turboprop product lines, as well as favorable pricing. The unit delivered 63 jets, up from 58 last year, and 67 commercial turboprops, up from 45 last year.

Textron shares have dived 18% in the past one year.

CEO Scott C. Donnelly said, “We had strong execution in both the quarter and full year with significant margin improvements at Aviation, Bell, and Systems. We were also encouraged by the continued strength in new aircraft demand at Aviation.”

For 2019, Textron is forecasting revenues of about $14 billion, about flat with last year. Textron expects full-year 2019 EPS from continuing operations in the range of $3.55 to $3.75.

 

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