Textron Earnings Preview
Textron (NYSE:TXT) is set to give its latest quarterly earnings report on Thursday, 2025-07-24. Here's what investors need to know before the announcement.
Analysts estimate that Textron will report an earnings per share (EPS) of $1.44.
The market awaits Textron's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Performance in Previous Earnings
In the previous earnings release, the company beat EPS by $0.16, leading to a 0.72% increase in the share price the following trading session.
Here's a look at Textron's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.12 | 1.25 | 1.49 | 1.49 |
| EPS Actual | 1.28 | 1.34 | 1.40 | 1.54 |
| Price Change % | 1.0% | -0.0% | 1.0% | -2.0% |
Stock Performance
Shares of Textron were trading at $86.04 as of July 22. Over the last 52-week period, shares are down 4.5%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analyst Observations about Textron
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Textron.
With 4 analyst ratings, Textron has a consensus rating of Neutral. The average one-year price target is $82.25, indicating a potential 4.4% downside.
Comparing Ratings with Peers
The analysis below examines the analyst ratings and average 1-year price targets of Woodward, Curtiss-Wright and ATI, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Woodward, with an average 1-year price target of $249.75, suggesting a potential 190.27% upside.
- Analysts currently favor an Buy trajectory for Curtiss-Wright, with an average 1-year price target of $487.67, suggesting a potential 466.79% upside.
- Analysts currently favor an Outperform trajectory for ATI, with an average 1-year price target of $105.0, suggesting a potential 22.04% upside.
Overview of Peer Analysis
Within the peer analysis summary, vital metrics for Woodward, Curtiss-Wright and ATI are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Textron | Neutral | 5.45% | $634M | 2.86% |
| Woodward | Buy | 5.78% | $240.10M | 4.79% |
| Curtiss-Wright | Buy | 12.97% | $292.46M | 4.05% |
| ATI | Outperform | 9.73% | $235.80M | 5.21% |
Key Takeaway:
Textron ranks in the middle among its peers for Consensus rating. It is at the bottom for Revenue Growth and Gross Profit, while it is at the top for Return on Equity.
Delving into Textron's Background
Textron is a conglomerate that designs, manufactures, and services a range of specialty aircraft including small jets, propeller-driven airplanes, helicopters, and tilt-rotor aircraft. Textron Aviation manufactures and services Cessna and Beechcraft planes. Bell is a helicopter and tilt-rotor manufacturer and servicer for both commercial and military customers. Textron Systems produces uncrewed aircraft and armored vehicles for the military market as well as aircraft simulators and training for the commercial and military markets. Textron Industrial contains the Kautex business, which manufactures plastic fuel tanks for conventional and hybrid motor vehicles, and other subsidiaries that produce specialized vehicles such as golf carts and all-terrain vehicles.
Textron: Delving into Financials
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Positive Revenue Trend: Examining Textron's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.45% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: Textron's net margin is impressive, surpassing industry averages. With a net margin of 6.26%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Textron's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.86%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Textron's ROA excels beyond industry benchmarks, reaching 1.23%. This signifies efficient management of assets and strong financial health.
Debt Management: With a below-average debt-to-equity ratio of 0.51, Textron adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for Textron visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
