Textron ( NYSE: TXT ) stock rose ~3% on Thursday following its mixed Q3 results , wherein revenue missed analysts estimates.
Income from continuing operations per share grew +29.27% Y/Y to $1.06.
Total revenues increased +2.94% Y/Y to $3.08B.
Revenue from Textron Aviation segment fell ~1.2% Y/Y to 1.17B. The company said the decline was largely due to lower Citation jet and pre-owned volume, partially offset by favorable pricing and higher aftermarket volume.
The company added that Textron Aviation delivered 39 jets in Q3, down from 49 last year, and 33 commercial turboprops, compared to 35 in Q3 2021.
Textron added that segment profit was $139M, up $41M Y/Y, largely due to favorable pricing, net of inflation of $31M.
Revenue from Bell segment, were $754M, down $15M Y/Y, due to lower military revenues of $112M, mainly in the H-1 program due to lower aircraft and spares volume, offset by higher commercial revenues of $97M, according to the company.
Bell delivered 49 commercial helicopters in Q3, compared to 33 in Q3 2021.
Meanwhile, revenues at Textron Systems were down $7M Y/Y to $292M, largely due to lower volume.
"In the quarter, we saw higher segment profit margin and strong cash generation," said Textron Chairman and CEO Scott Donnelly.
The company said net cash provided by operating activities of the manufacturing group for Q3 was $356M, compared to $333M in Q3 2021.
Buyback :
Textron noted that in Q3 it bought back $200M worth of shares. YTD, stock repurchases were $639M.
Outlook :
Textron raised the lower end of its 2022 EPS from continuing operations outlook and now expects to be in the range of $3.90 to $4 ( prior outlook $3.80 to $4). Manufacturing cash flow before pension contributions to be between $1.1B and $1.2B (prior forecast $800M to $900M), with planned pension contributions of $50M.
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Textron trades higher as Q3 revenue rises; revises FY22 outlook