Textron, the industrial conglomerate, experienced a surge in its stock price as shares rose by 8.2% to reach $85.87. This increase came as a result of the company’s strong revenue growth in its latest quarter and its positive outlook for 2024.
Over the past 12 months, Textron’s stock has climbed approximately 23%, positioning it to potentially reach a new all-time high. Currently, it holds the second-best performance rank in the S&P 500.
In the fourth quarter that ended on December 30, Textron reported a revenue of $3.89 billion, surpassing the previous year’s figure of $3.64 billion. Despite falling slightly short of analysts’ expectations, who had predicted revenue of $3.97 billion, the company still achieved a commendable growth rate.
The standout performer in Textron’s revenue growth was its Bell segment, which saw an increase of $255 million to reach $1.1 billion. This growth was driven by both higher commercial revenue due to increased deliveries and higher military revenue associated with the FLRAA program.
Looking ahead to 2024, Textron’s forecast is optimistic. The Providence, R.I.-based company expects revenue to reach approximately $14.6 billion, with adjusted earnings ranging between $6.20 and $6.40 per share. While analysts polled by FactSet had anticipated slightly higher revenue of $14.69 billion, they still viewed Textron’s earnings outlook favorably, predicting $5.97 per share on an adjusted basis.
Overall, Textron’s strong financial performance and positive projections indicate continued success in the years to come.