Textron tops results estimates, aviation productivity concerns weigh

Textron beat second-quarter profit and revenue estimates on Tuesday, owing to higher aircraft pricing, but productivity issues at its aviation unit weighed on jet deliveries, sending its shares down more than 6% in morning trading.

Textron's total quarterly revenue rose 7% to $3.83 billion, compared with analysts' average estimate of $3.8 billion, according to data compiled by LSEG.

The company's quarterly adjusted profit stood at $1.62 per share, compared with estimates of $1.55.

Textron reiterated its full-year adjusted profit forecast of $6.40 to $6.60 per share, the midpoint of which stands 2 cents below estimates of $6.52.

Textron's profit forecast assumes the receipt of additional Army funding for the MV-75 Cheyenne program, noting a 20-cent to 30-cent per share hit if the funding does not materialize.

The company is continuing work on the program on a self-funded basis while awaiting congressional approval of an Army request to reallocate funding, executives said during the call.

The Bell segment, which makes helicopters and tiltrotor aircraft, posted a 6% rise in quarterly revenue, driven by growth in the MV-75 Future Long Range Assault Aircraft program and higher commercial helicopter, parts and services sales.

Revenue rose 7% at the Textron Systems segment and was up 1% at the industrial segment.

The business jet maker's larger aviation segment, which manufactures the Cessna jet and Beechcraft aircraft, delivered nine jets fewer than a year ago.