Textron (NYSE: TXT) reported third quarter earnings below Wall Street’s expectation Thursday on restructuring costs and lower commercial deliveries in its Bell Helicopter segment.
GovCon Index-S&P 500 company Textron reported $0.61 earnings per share versus the $0.67 analyst consensus with third quarter EPS excluding a $0.76 benefit from settlements of Internal Revenue Service audits and the $0.27-after tax restructuring charge.
With those items, the Providence, R.I.-based defense and industrial conglomerate recorded $1.10 earnings per share for the quarter.
Textron also adjusted full-year EPS guidance to $2.65-$2.75 from the prior $2.60-$2.80 outlook.
Textron becomes the first GovCon Index company to report financial results in third quarter reporting season this year with major prime contractors due to state earnings next week.
Next week’s slate of reports includes results from Boeing (NYSE: BA), General Dynamics (NYSE: GD), Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC), Raytheon (NYSE: RTN) and L-3 Communications (NYSE: LLL).
Income from continuing operations at Textron climbed 69.88 percent year-over-year to $176 million, while total net income increased 139.2 percent to $421 million when including the IRS settlement benefit.
Revenue climbed 2.2 percent from the same period last year to $3.25 million on higher deliveries of the company’s Citation business jet.
Wall Street analysts expected Textron to report $3.4 billion in sales.
As of Wednesday’s close, shares in Textron have declined 9.97 percent since the year started and are down 2.56 percent over 12 months.
By comparison, the GovCon Index is up 5.35 percent on a year-to-date basis and has risen 5.83 percent for 52 weeks versus the S&P 500 composite index’s respective gains of 4.91 percent YTD and 5.44 percent over one full year.
