Why Textron Shares Are Shooting Higher Today

Textron Inc. TXT reported second-quarter FY23 sales growth of 8.6% year-over-year to $3.42 billion, beating the consensus of $3.41 billion.

Adjusted EPS of $1.46 beat the consensus of $1.21.

"Operationally, execution was strong across our segments with a segment profit margin of 10.3% in the second quarter of 2023, up 140 basis points from last year's second quarter," said Textron Chairman and CEO, Scott C. Donnelly. 

Operating cash flow for the second quarter was $314 million, compared to $364 million last year.

The company exited the quarter with cash and equivalents worth $1.695 billion.

At the end of the second quarter, Textron Aviation's backlog was $6.8 billion, Bell's backlog was $5.6 billion, and Textron Systems' backlog was $1.9 billion.

Share Repurchase Program

On July 24, 2023, Textron's Board of Directors approved a new authorization to repurchase up to 35 million shares.

FY23 Outlook Raised

Textron now expects 2023 adjusted EPS from continuing operations to be $5.20-$5.30, up from the previous outlook of $5.00-$5.20.

Textron reiterated its expectation for cash flow from continuing operations of the manufacturing group before pension contributions of $0.9 billion to $1.0 billion, with planned pension contributions of about $50 million.

Price Action: TXT shares traded higher by 10.3% at $75.43 on the last check Thursday.