Textron (NYSE:TXT) Shares Gap Down on Disappointing Earnings

Textron Inc. (NYSE:TXT)’s stock price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $94.01, but opened at $84.76. Textron shares last traded at $83.11, with a volume of 1,327,636 shares.

The aerospace company reported $1.20 earnings per share for the quarter, missing the consensus estimate of $1.28 by ($0.08). The firm had revenue of $3.14 billion for the quarter, compared to analysts’ expectations of $3.29 billion. Textron had a net margin of 6.75% and a return on equity of 16.30%. The firm’s revenue for the quarter was up 3.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.05 EPS.

Textron Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, July 1st. Stockholders of record on Friday, June 14th will be issued a $0.02 dividend. The ex-dividend date of this dividend is Friday, June 14th. This represents a $0.08 annualized dividend and a dividend yield of 0.09%. Textron’s dividend payout ratio (DPR) is presently 1.71%.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. The Goldman Sachs Group boosted their price objective on Textron from $103.00 to $120.00 and gave the company a “buy” rating in a report on Tuesday, April 16th. Susquehanna decreased their price objective on Textron from $110.00 to $105.00 and set a “positive” rating for the company in a report on Friday. Bank of America raised Textron from a “neutral” rating to a “buy” rating and upped their price target for the stock from $85.00 to $105.00 in a report on Friday, March 8th. Citigroup upped their price target on Textron from $104.00 to $111.00 and gave the stock a “buy” rating in a report on Thursday, April 4th. Finally, StockNews.com cut Textron from a “strong-buy” rating to a “buy” rating in a report on Friday. One analyst has rated the stock with a sell rating, two have assigned a hold rating and six have issued a buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $95.63.

Institutional Investors Weigh In On Textron

Large investors have recently made changes to their positions in the stock. AE Wealth Management LLC grew its position in Textron by 23.7% in the third quarter. AE Wealth Management LLC now owns 13,114 shares of the aerospace company’s stock worth $1,025,000 after acquiring an additional 2,515 shares during the period. Global Retirement Partners LLC grew its position in Textron by 393.9% in the third quarter. Global Retirement Partners LLC now owns 489 shares of the aerospace company’s stock worth $37,000 after acquiring an additional 390 shares during the period. Czech National Bank grew its position in Textron by 45.0% in the third quarter. Czech National Bank now owns 34,619 shares of the aerospace company’s stock worth $2,705,000 after acquiring an additional 10,744 shares during the period. Uncommon Cents Investing LLC purchased a new position in Textron in the third quarter worth approximately $276,000. Finally, Bfsg LLC purchased a new position in Textron in the third quarter worth approximately $901,000. 86.03% of the stock is currently owned by hedge funds and other institutional investors.

Textron Stock Performance

The firm has a 50-day moving average price of $92.10 and a 200 day moving average price of $83.86. The firm has a market capitalization of $16.64 billion, a PE ratio of 18.49, a price-to-earnings-growth ratio of 1.33 and a beta of 1.30. The company has a quick ratio of 1.03, a current ratio of 1.66 and a debt-to-equity ratio of 0.41.

About Textron

Textron Inc operates in the aircraft, defense, industrial, and finance businesses worldwide. It operates through six segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. The Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft; and offers maintenance, inspection, and repair services, as well as sells commercial parts.