Shares of Textron Inc. (NYSE:TXT) rose 4.5% on Thursday after the company reported first-quarter results that came in ahead of Wall Street expectations.
The aerospace and defense group posted adjusted earnings per share of $1.45, beating the consensus estimate of $1.32 by $0.13. Revenue reached $3.7 billion, exceeding the $3.51 billion forecast and rising 12% from $3.3 billion in the same quarter last year.
“Textron delivered double-digit revenue and EPS growth in the quarter,” said CEO Lisa M. Atherton. “Strong growth in Aviation deliveries, continued scaling of the MV-75 Cheyenne at Bell, excellent execution at Systems, and good performance at Industrial all contributed to a successful quarter.”
The positive earnings surprise and solid revenue growth drove the stock higher following the release.
Textron Aviation led performance among business units, generating revenue of $1.5 billion, up 22% year-over-year, supported by increased aircraft deliveries and stronger aftermarket services. The division delivered 37 jets, compared with 31 a year earlier, and 35 commercial turboprops versus 30 previously. Segment profit rose 26% to $154 million.
Revenue at Bell increased 9% to $1.1 billion, mainly due to a $161 million rise in military sales linked to higher volumes in the MV-75 Cheyenne program. However, segment profit declined by $18 million to $72 million, reflecting an unfavorable mix in military programs and lower commercial demand.
Textron Systems reported revenue of $338 million, up 13% year-over-year, with segment profit increasing to $42 million. Meanwhile, Industrial segment revenue was broadly unchanged at $786 million.
Manufacturing cash flow before pension contributions showed a usage of $228 million, compared with $158 million in the same quarter last year. During the period, the company returned $168 million to shareholders through share buybacks.
Textron also announced plans to separate its Industrial segment from its core aerospace and defense operations.