Textron stock will see higher levels after Q4 results?

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Textron stock


(NYSE: TXT
XT
On Thursday, January 26, ), will report its Q4 2022 results. TXT stock will trade sideways after Q4, with its expected revenue in line with street estimates and earnings higher than the street. Higher aftermarket and aircraft volume will continue to be a benefit for the company. We expect the company will navigate well in the current quarter. However, our forecast shows that TXT stock still has room for growth as we discuss below. Interactive dashboard analysis of


Textron Earnings Preview


Additional details are available.


(1) Expected revenue to be in line the consensus estimates

  • Trefis estimates Textron’s
    TXT
    Revenues for Q4 2022 to be approximately $3.3 billion. This is a low single-digit decline y-o y and in line with the consensus estimate of $3.3 billion.
  • Textron will benefit from an increase in aircraft and aftermarket volumes due to rising travel demand.
  • Its Industrial business should continue enjoying better volume and price realization.
  • The lower H-1 program military revenue may mean that sales of the Bell segment will continue to decline. Segment revenue fell 9% over the nine months ended Sep 2022. The lower volume may have caused a drop in sales at Textron Systems.
  • The company’s Q3 2022 sales increased by 3% to $3.1 billion due to higher sales in its Industrial segment.
  • The dashboard on Textron revenues provides more information about the company’s segments.

( 2 EPS expected to be higher than the consensus estimates

  • Textron’s Q4 2022 adjusted earnings (EPS) are expected to be $1.07 according to Trefis analysis. This is comfortably higher than the consensus estimate of $1.00. This is compared to the $0.86 figure reported by the company in the previous-year quarter.
  • The net income of the company, $225 million in Q3 2022, was 22% higher than its $185 million figure from the previous-year quarter. This was due to a 38 bps increase in operating margin.
  • We expect that the EPS for the full-year 2023 will be $5.11, compared to the $3.33 EPS in 2021 and an estimate $4.83 in 2022.


(3) TXT stock appears to have more potential for growth

  • We believe Textron’s Valuation to be approximately $81 per share. This is 17% higher than the current market price, $69.
  • TXT stock trades at a forward EPS estimate 13x of $5.11 at its current level, which is more than the average 18x over the past three years. This suggests that there is more potential for growth.
  • If the company reports positive Q4 results and a 2023 outlook that is better than street estimates, the P/E multiple may be revised upwards, which will result in higher levels of TXT stock.

TXT stock may seem to have more potential for growth. However, it’s worth checking out how Textron and its Peers fared on the relevant metrics. You can also find valuable comparisons between companies in different industries at .

There are many pricing anomalies that can present attractive trading opportunities due to the Covid-19 crisis. You’ll be amazed at how contradictory the stock valuation for Aerojet Rocketdyne is compared to Brink’s company.

TXT stock fell 1% in twelve months due to higher inflation and Fed raising interest rates. It could fall further. See Textron stock’s potential fall , by comparing it to its decline in past market crashes. Here is a performance summary of all stocks in previous market crashes.

What if you want a more balanced portfolio? Since the beginning of 2016, our high quality portfolio as well as our multistrategy portfolio consistently beat the market.

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View all Trefis Estimated Prices

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Alexandra Williams
Alexandra Williams
Alexandra Williams is a writer and editor. Angeles. She writes about politics, art, and culture for LinkDaddy News.

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