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Will Segmental Sales Drive Textron Stock in Q1 Earnings?

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Textron Inc. TXT is scheduled to release its first-quarter 2025 results on April 24, before market open.

The company has a four-quarter average earnings surprise of 0.05%. The improving revenue performance across three of its major business segments is likely to have boosted Textron’s overall top-line performance. However, charges related to its restructuring plan are likely to have hurt earnings.

Textron Aviation Likely to Post Solid Sales

Steady customer demand, bolstered by new product launches and strong aftermarket performance, is likely to have boosted the Aviation unit’s revenues in the first quarter.

The Zacks Consensus Estimate for this segment’s revenues is pegged at $1,250.5 million, which indicates an increase of 5.3% from the year-ago quarter.

Textron Inc. Price and EPS Surprise

Textron Inc. Price and EPS Surprise
Textron Inc. Price and EPS Surprise

Textron Inc. price-eps-surprise | Textron Inc. Quote

Factors Likely to Have Influenced Bell’s Performance

Higher military sales volumes, backed by the continued ramp-up of the FLRAA program, are projected to have bolstered the Bell unit’s revenue performance.

Moreover, the Bell unit successfully delivered an IFR-configured Bell 407GXi to Global Medical Response in the first quarter. Such deliveries are expected to have boosted this segment’s top line.

However, a lower volume of the V-22 program is likely to have adversely impacted this segment’s overall revenues to some extent.

The Zacks Consensus Estimate for the Bell segment’s revenues is pegged at $854.5 million, which indicates growth of 17.5% from the year-ago quarter.

Textron Systems’ Revenues

Higher sales volumes of the Ship-to-Shore Connector program are likely to have boosted Textron Systems’ revenue performance.

The Zacks Consensus Estimate for Textron Systems’ revenues is pegged at $314.4 million, which implies a rise of 2.7% from the year-ago quarter.

Industrial Unit’s Performance

Lower volumes from the specialized vehicles product line, as well as the suspension of powersports production, are likely to have impacted TXT’s Industrial segment’s performance.

The Zacks Consensus Estimate for the Industrial segment’s revenues is pegged at $800.7 million, which indicates a decline of 10.2% from the year-ago quarter.

TXT’s Q1 Estimates

The robust revenue performance in three of its four major business segments is likely to have bolstered TXT’s overall top line.

The Zacks Consensus Estimate for TXT’s first-quarter revenues is pegged at $3.25 billion, which indicates growth of 3.5% from the year-ago quarter’s figure.

While solid sales growth expectations are likely to have contributed favorably to the company’s bottom line, special charges related to its restructuring plan and inventory valuation charges, along with higher research and development expenses, are projected to have hurt its overall earnings performance.

The Zacks Consensus Estimate for TXT’s earnings is pegged at $1.17 per share. This indicates a decline of 2.5% from the prior-year figure. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)