Press
July 19, 2012
Textron Rides Rebound in Private Planes, Helicopter Sales
Source: Barrons
By: Avi Salzman
Textron (TXT) shares are 11% higher today after the company posted better than expected earnings on an uptick in sales of its Cessna planes and strong results at its Bell Helicopter division.
Textron posted 58 cents of EPS, 14 cents ahead of expectations. Revenue jumped 10.7% as Cessna sales rose 17% and Bell helicopter sales rose 21%.
The company''s backlog fell, although it doesn''t yet reflect a big order from NetJets, owned by Berkshire Hathaway (BRKB). "Cessna delivered 49 jets beating our 44 unit forecast. However, backlog fell about 11% sequentially to $1.5 billion," wrote Vertical Research Partners analyst Jeff Sprague. "The recent Net Jets order is not in backlog yet, but nevertheless Cessna is operating hand to mouth from an order to delivery standpoint. However, what Cessna can control is bearing fruit. Cessna margins of 4.6% were nearly double our forecast reflecting good execution on costs."
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