Textron: Quietly Lining Up A Q1 Beat
Summarize this article with:
Passage Research4.93K FollowersFollow5ShareSavePlay(13min)CommentsSummaryTextron is set for a Q1 earnings beat, driven by strong Textron Aviation growth and a ramping Bell segment, with the MV-75 helicopter program.TXT trades at a discount to pure-play A&D peers, despite similar profit streams and a clean balance sheet, with minimal leverage.I model $1.42 Q1 EPS, versus street at $1.30, with upside to $118/share (34% upside) on a 17.5x multiple and $6.75 EPS this year.Key risks include 27% US government revenue concentration, business jet cyclicality, and macroeconomic sensitivity, especially within Textron Aviation. Sandi Smolker/iStock Editorial via Getty Images Textron (TXT) is a diversified multi-line industrial company that has a large product offering across aircraft, defense, and other industrial verticals. As a large supplier to the US government, the company has clear visibility into growth for one of its largest divisions, Bell, to beginThis article was written byPassage Research4.93K FollowersFollowPassage Research focuses on identifying variant perception through a blend of fundamental analysis and alternative data. The research process combines detailed financial modeling with real-time datasets to underwrite earnings power, margin durability, and forward expectations.The author has spent over a decade on Wall Street, most recently spending the last five years working in the hedge fund industry as an analyst. Typical coverage spans consumer, TMT, industrials and special situations, with an emphasis on asymmetric risk/reward and catalyst-driven opportunities.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in TXT over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.