Textron Q1 Profit Down, Misses Estimates; Adjusts FY17 Earnings View

(RTTNews) - Textron Inc. (TXT), an aircraft, defense and industrial company, reported Wednesday its first-quarter net income of $101 million or $0.37 per share, lower than last year's $150 million or $0.55 per share.

During this year's first quarter, the company recorded $37 million of pre-tax special charges or $0.09 per share.

Adjusted net income was $125 million or $0.46 per share in the latest quarter.

Revenues in the quarter were $3.09 billion, down 3.4 percent from $3.20 billion a year ago.

On average, analysts polled by Thomson Reuters expected earnings of $0.47 per share for the quarter on revenues of $3.18 billion. Analysts' estimates typically exclude special items.

Textron segment profit in the quarter was $219 million, down $61 million from the first quarter of 2016.

Textron Chairman and CEO Scott Donnelly said, "Overall, revenues and profit were down in the quarter consistent with our expectations. We are continuing to execute our restructuring plan while maintaining our focus on new product investment and the integration of acquired businesses, all of which will have a positive impact on our long term growth outlook."

Looking ahead, for fiscal 2017, the company adjusted its earnings guidance, and now expects GAAP earnings per share from continuing operations in a range of $2.22 to $2.45, or $2.40 to $2.60 on an adjusted basis. Analysts expect earnings of $2.59 per share for the year.

The revision reflects the closing of the Arctic Cat acquisition. The outlook reflects earnings per share dilution of $0.10 per share, consistent with its expectations at the time it announced the transaction.

The company also estimates that it will record 2017 full-year Arctic Cat pretax acquisition and restructuring costs of $30 million on the special charges line, which is included in its GAAP guidance range.