Increased deliveries of the Bell Boeing V-22 Osprey to the U.S. Marine Corps in the fourth-quarter boosted Textron revenues from the year-ago period.
Courtesy of Kate M. Gray.
Textron Inc. reported sharply higher fourth-quarter earnings Wednesday on increased deliveries of its civilian and military aircraft. Shares of the aircraft and defense company shares closed up 5.26 percent Wednesday from the previous day’s close.
In the three months ended Dec. 28, Textron posted net income of $171 million from continuing operations, or 60 cents per diluted share, up 17.1 percent from $146 million, or 50 cents per diluted share, in the year-ago period.
Results were just below estimates by securities analysts. Wall Street analysts surveyed by Zacks Investment Research Inc. were expecting Textron to earn 61 cents per diluted share.
Revenues rose 4.3 percent to $3.56 billion, up from $3.51 billion the previous year.
CEO Scott Donnelly attributed the company’s strong performance to a rise in revenue from new products, including the delivery of 62 new Citation jets this quarter within the company’s Cessna Aircraft Co. manufacturing unit. Within Textron’s Bell Helicopters business, delivery of helicopters and commercial aircraft also increased.
Securities analysts were generally satisfied with the results. Carter Copeland, equity research analyst covering global aerospace at Barclays Capital, said he will maintain his buy rating in a research note released Friday.
Copeland attributed the company’s recent growth to the “fresh pipeline of new product” and strong corporate profit growth in its Cessna Aircraft Company segment. Homeland security and natural disaster efforts are key factors also driving the recent growth in Textron’s Bell Helicopters business.
For the year-ended Dec. 28, Textron earned $498 million from continuing operations, or $1.75 per diluted share, down 14.3 percent from $581 million, or $1.97 per diluted share, in 2012. Wall Street analysts surveyed by Zacks Investment Research Inc. were expecting Textron to earn $1.76 per diluted share for the full year.
Revenue for 2013 dropped 1 percent to $12.10 billion from $12.24 billion in 2012.
Donnelly forecasts even better performance this year, with 2014 being a “full year of new products that have been well-received in the marketplace.” Donnelly said the company will produce revenue growth and earnings in the range of $2.00 to $2.20 per diluted share this year. In 2013, Textron earned $1.75 per diluted share.
In December the company announced its purchase of Beech Holdings. Donnelly said in the conference call that Textron will revise its revenue and earnings outlook once the transaction is complete.
Textron shares closed at $38.00 Wednesday, up $1.90 from Tuesday’s close of $36.10.
