Textron Q3 Earnings Beat Estimates Aided By 49% Aviation Revenue Growth

Textron Inc. TXT reported third-quarter FY21 sales growth of 9.3% year-over-year to $2.99 billion, beating the consensus of $2.68 billion.
Revenue by segments: Textron Aviation $1.18 billion (+48.6% Y/Y), Bell $769 million (-3% Y/Y), Textron Systems $299 million (-1% Y/Y) and Industrial $730 million (-12.3% Y/Y).
Adjusted EPS of $0.85 (compared to $0.53 a year ago) topped the consensus of $0.66.
The segment profit increased to $279 million from $189 million a year ago, and the margin expanded by 242 bps to 9.33%.
Income from continuing operations increased 60.9% Y/Y to $185 million.
Textron generated cash from operating activities of $401 million, compared to $352 million a year ago.
Net cash provided by operating activities of continuing operations of the manufacturing group was $333 million versus $368 million last year.
Backlog at the end of the quarter for Aviation was $3.5 billion, Bell was $4.1 billion, and Textron Systems was $2.2 billion.
During the quarter, Textron returned $299 million to shareholders through share repurchases.
FY21 Outlook: Textron expects EPS from continuing operations of $3.17 - $3.29 (prior view $2.97 - $3.21), and adjusted EPS of $3.20 - $3.30 (prior $3.00 - $3.20) versus analysts' consensus of $2.84.
It also expects cash flow from continuing operations of the manufacturing group before pension contributions of $1 billion - $1.1 billion.
Price Action: TXT shares traded higher by 2.64% at $72.6 on the last check Thursday.

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