TXT - Why Textron Stock Crashed 12% on Thursday
2024-04-25 12:08:30 ET
Shares of defense contractor Textron (NYSE: TXT) tumbled 11.8% through 10:35 a.m. ET Thursday despite the company reporting better-than-expected results for Q1 2024.
Analysts forecast the maker of armored cars, military drones , Cessna airplanes, and Bell helicopters would earn only $1.13 per share ( non-GAAP ) on sales of $3.1 billion in Q1. But Textron surprised to the upside with $1.20 per share in earnings and sales of $3.14 billion -- yet its stock fell. Why?
The earnings numbers above are all non-GAAP -- which is to say they don't count costs that the company considers "one-time" in nature. When calculated according to generally accepted accounting principles ( GAAP ), Textron's earnings were actually only $1.03 per share, which was less than the non-GAAP number, and may have disappointed investors. Still, it's a respectable 12% improvement over Q1 2023 numbers -- not too shabby considering sales grew less than 4%.
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Why Textron Stock Crashed 12% on Thursday