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

Shares of Textron Inc. (NYSE:TXT) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. 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 changing hands.

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

Textron Announces Dividend

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

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on TXT. Bank of America upgraded shares of Textron from a “neutral” rating to a “buy” rating and boosted their price target for the stock from $85.00 to $105.00 in a research report on Friday, March 8th. UBS Group lifted their price objective on shares of Textron from $77.00 to $81.00 and gave the company a “sell” rating in a research note on Friday, January 26th. Susquehanna lowered their price objective on shares of Textron from $110.00 to $105.00 and set a “positive” rating for the company in a research note on Friday. The Goldman Sachs Group lifted their price objective on shares of Textron from $103.00 to $120.00 and gave the company a “buy” rating in a research note on Tuesday, April 16th. Finally, Citigroup lifted their price objective on shares of Textron from $104.00 to $111.00 and gave the stock a “buy” rating in a report on Thursday, April 4th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and six have assigned a buy rating to the stock. According to MarketBeat, Textron presently has a consensus rating of “Moderate Buy” and a consensus price target of $95.63.

Institutional Investors Weigh In On Textron

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Boston Partners increased its position in shares of Textron by 2.0% in the fourth quarter. Boston Partners now owns 7,016,363 shares of the aerospace company’s stock worth $564,235,000 after purchasing an additional 139,927 shares during the last quarter. Victory Capital Management Inc. boosted its holdings in shares of Textron by 3.4% during the 3rd quarter. Victory Capital Management Inc. now owns 6,756,439 shares of the aerospace company’s stock valued at $527,948,000 after buying an additional 220,891 shares in the last quarter. JPMorgan Chase & Co. boosted its holdings in shares of Textron by 11.6% during the 3rd quarter. JPMorgan Chase & Co. now owns 5,745,108 shares of the aerospace company’s stock valued at $448,923,000 after buying an additional 596,214 shares in the last quarter. Primecap Management Co. CA boosted its holdings in shares of Textron by 9.7% during the 3rd quarter. Primecap Management Co. CA now owns 5,394,200 shares of the aerospace company’s stock valued at $421,503,000 after buying an additional 477,720 shares in the last quarter. Finally, LSV Asset Management raised its position in shares of Textron by 15.9% in the 4th quarter. LSV Asset Management now owns 3,793,047 shares of the aerospace company’s stock worth $305,037,000 after purchasing an additional 521,276 shares during the last quarter. 86.03% of the stock is currently owned by institutional investors.

Textron Trading Up 1.9 %

The firm has a 50-day moving average price of $92.10 and a 200-day moving average price of $83.86. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.03 and a current ratio of 1.66. The stock has a market cap 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.

Textron Company Profile

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.