Textron Cuts FY24 Earnings View Below Market After Q3 Miss Street; Stock Down In Pre-market - Update

(RTTNews) - Shares of Textron Inc. (TXT) were losing around 4 percent in the pre-market activity on the NYSE after the company on Thursday trimmed its fiscal 2024 earnings view, below market. This was after reporting lower-than-expected earnings in its third quarter, despite revenue growth.

The company warned that the fourth-quarter revenue and segment profit would be unfavorably impacted due to the labor disruption following a four-week strike by the International Association of Machinists and Aerospace Workers (IAM) District 70, Local Lodge 774 representing the Wichita-based direct labor workforce.

Textron Chairman and CEO Scott Donnelly said, "In the third quarter, Textron Aviation experienced a strike upon the expiration of its existing labor agreement with bargaining unit employees that was recently settled with the ratification of a new five-year contract. The labor disruption adversely impacted our third quarter results and we expect it to negatively affect fourth quarter financials."

For fiscal 2024, Textron now expects adjusted earnings per share from continuing operations to be in a range of $5.40 to $5.60, down from its previous outlook of $6.20 to $6.40.

Analysts on average expect the company to report earnings of $6.11 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

In its third quarter, Textron's profit decreased from last year and missed the Street estimates.

The company's bottom line totaled $223 million, or $1.18 per share, compared to $269 million, or $1.35 per share, in last year's third quarter.

Adjusted earnings were $265 million or $1.40 per share for the period. Analysts expected the company to earn $1.49 per share.

The company's revenue for the quarter rose 2.7 percent to $3.43 billion from $3.34 billion last year.

In pre-market activity on the NYSE, Textron shares were losing around 3.9 percent to trade at $83.50.

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