Yahoo Finance Earnings Miss: Textron Inc. Missed EPS By 9.0% And Analysts Are Revising Their Forecasts
As you might know, Textron Inc. (NYSE:TXT) last week released its latest first-quarter, and things did not turn out so great for shareholders. Results look to have been somewhat negative - revenue fell 3.9% short of analyst estimates at US$3.1b, and statutory earnings of US$1.03 per share missed forecasts by 9.0%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Textron
Following the latest results, Textron's 15 analysts are now forecasting revenues of US$14.6b in 2024. This would be a reasonable 5.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 16% to US$5.65. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$14.7b and earnings per share (EPS) of US$5.75 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$98.83, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Textron analyst has a price target of US$121 per share, while the most pessimistic values it at US$84.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Textron's rate of growth is expected to accelerate meaningfully, with the forecast 7.5% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 0.2% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Textron to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$98.83, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Textron going out to 2026, and you can see them free on our platform here..
You can also see whether Textron is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
