Textron Shares Drop After Unexpected Revenue Drop
January 27 2016 - 11:00AM
Dow Jones News
Shares of Textron Inc. dropped 7.6% in morning trading after the
company posted an unexpected revenue decline and a cautious
earnings forecast.
Textron, which makes Bell helicopters and Cessna and Beechcraft
airplanes, also said it expects 2016 earnings per share to be below
analysts' estimates. The company expects revenue of about $14.3
billion and earnings per share from continuing operations of
between $2.60 to $2.80. Analysts polled by Thomson Reuters had
predicted 2016 revenue of $14.29 billion and earnings per share of
$2.88.
Textron said revenue in its latest quarter declined 4.2% to
$3.92 billion, well below Wall Street forecasts of $4.22
billion.
Revenue at its Textron Aviation unit, the company's largest,
fell 2.1% as fewer King Air aircrafts were delivered. Bell revenue
fell 3.4% as Industrial revenue increased 6.4% on higher
volumes.
Sales in its Textron Systems unit, which makes technology for
police and military uses, fell 25% primarily due to lower volume of
unmanned systems, which includes drones.
Overall for the quarter, Textron reported a profit of $226
million, or 82 cents per share, compared with a year prior profit
of $212 million, or 76 cents per share.
Analysts had expected earnings of 83 cents per share.
Textron shares recently traded at $34.85 and have lost more than
18% of their value in the past month.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
January 27, 2016 10:45 ET (15:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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