Shares of Textron Inc.
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Revenue was up 6 percent and profits were down 8 percent at Textron Aviation in the second quarter of 2016, according to an earnings report released by its parent company, Textron Inc., on Friday.
Revenue Beat: Textron posted revenues of $3,511 million in second quarter, compared to our consensus estimate of $3,331 million.
Analysts had expected net income of $169.5 million with an EPS of $0.64 and revenues were expected to be $3.37 billion.
Up to Thursday’s close of $39.21, the company’s shares had fallen 6.8 percent in the last 12 months, compared with a 1 percent rise in the Dow Jones U.S. Aerospace Index.
Net income for Textron rose 6 percent from the same period previous year to $177 million. The company has experienced volume of 2.58M shares while on average the company has a capacity of trading 1.73M shares.
Industrial sales for the quarter were up 8.3 percent year-over-year to $1 billion, due to higher volumes and the impact of acquisitions. Profit was up 10.8 percent to $327 million. Commercial helicopter deliveries fell by 15 to 24 YoY reflecting the current depressed state of the market as customers cut back on spending.
Honeywell also lowered its full-year sales guidance to $40.0 billion-to-$40.6 billion from the prior $40.3 billion-to-$40.9 billion.
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The Systems division which provides everything from weapons to unmanned combat systems to military and police, saw a sharp increase in its revenues, up 51.2% to $487 million, as sales volumes rose significantly. Textron segment profit in the quarter was $328 million, up $22 million from the second quarter of 2015. For the third quarter, the company is set to receive an income tax benefit of $315 million due to a settlement with the IRS.
