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Textron (TXT) Q4 Earnings Lag Estimates, Revenues Fall Y/Y

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Textron Inc. TXT reported fourth-quarter 2021 adjusted earnings of 94 cents per share, which missed the Zacks Consensus Estimate of 98 cents by 4.1%. The bottom-line figure also deteriorated 11.3% from the year-ago quarter’s figure.

Including one-time items, the company posted GAAP earnings of 93 cents per share compared with $1.03 generated in the year-ago quarter.

For 2021, the company reported adjusted earnings of $3.30 per share, which missed the Zacks Consensus Estimate of $3.34. However, full-year earnings improved from 2020 earnings of $2.07 per share.

Revenues

Total revenues came in at $3,322 million, which missed the Zacks Consensus Estimate of $3,373 million by 1.5%. The reported figure also decreased 9.4% from the year-ago quarter’s $3,667 million on lower contributions from each of its segments.

Textron Inc. Price, Consensus and EPS Surprise

Textron Inc. Price, Consensus and EPS Surprise
Textron Inc. Price, Consensus and EPS Surprise

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

For 2021, the company recorded revenues worth $12.38 billion, thereby lagging the Zacks Consensus Estimate of $12.41 billion. The full-year revenues however improved from $11.65 billion in 2020.

Manufacturing revenues decreased 9.4% in the fourth quarter to $3,311 million while revenues at the Finance division declined 15.4% to $11 million.

Segmental Performance

Textron Aviation: In the quarter under review, revenues at this segment declined 12.9% year over year to $1,359 million. The decline was primarily due to lower aircraft volume.

The company delivered 46 jets, down from 61 in the year-ago quarter. It also delivered 43 commercial turboprops, down from 61 in fourth-quarter 2020.

The segment generated an operating profit of $137 million in the quarter compared with $108 million earned in the year-ago quarter, owing to favorable pricing and improved manufacturing performance. The order backlog at the end of the quarter was $4.1 billion.

Bell: Revenues from this segment slipped 1.5% to $858 million, primarily due to lower military volume.

The segment delivered 59 commercial helicopters in the quarter, up from 57 last year.

Segment profits were down 20% to $88 million on account of lower volume. Bell’s order backlog at the end of the quarter was $3.9 billion, down $1.4 billion sequentially.

Textron Systems: Revenues at this segment came in at $313 million, down 12.3% from the year-ago period. The deterioration can be attributed to lower volume, which included the impact of the U.S. Army’s withdrawal from Afghanistan on the segment's fee-for-service contracts.

Segmental profits declined 8.2% year over year to $45 million in the fourth quarter due to lower volume.