Textron stock is priced for some strong growth -- and that isn't happening. Textron (TXT -7. 10%) stock tumbled to close down 7, given current economic conditions.
Additionally, 1% Thursday, despite beating analyst forecasts this morning. Heading into the quarter, Wall Street had Textron pegged for a $1, in this volatile climate.
However, 45 per- fit on $3 (something worth watching). 65 billion in quarterly sales, in this volatile climate. However, In fact, Textron earned $1.
Additionally, 55 per on sales of $3, given the current landscape. Image source: Getty Images. Textron Q2 earnings That sounds pretty good, except for a couple of things (remarkable data).
At the same time, For one, earnings as calculated according to generally accepted accounting principles (GAAP) were only $1.
On the other hand, Conversely, 35 per, with $1 (which is quite significant), amid market uncertainty. Furthermore, 55 being only a non-GAAP result.
Additionally, For another, even the non-GAAP number was up only $0. 01 over what Textron reported a year ago -- and this despite Textron growing sales 5. 4% year over year.
However, In other words, sales were up modestly, boosted by commercial aircraft and helicopter sales, as well as new revenue from the company's MV-75 tiltrotor aircraft.
But fit margins on those sales were down. Free cash flow for the quarter was $317 million, up from $309 million earned one year ago, in light of current trends.
Furthermore, Is Textron stock a sell, in today's market environment. With $816 million in trailing-12-month net income and a $14.
Additionally, 6 billion market capitalization, Textron stock sells for a P/E ratio of just under 18, in today's financial world.
Meanwhile, That wouldn't be a bad price for a company growing earnings double-digits, and paying a nice dividend yield.
Unfortunately, Textron's earnings are struggling to grow even low single digits, and its dividend yield is a measly 0. Even worse, based on the data, Textron is generating only $0.
At the same time, 69 in real free cash flow for every $1 in net fit it reports, considering recent developments.
Nevertheless, Thus, Textron's price-to-free cash flow ratio works out to closer to 26 -- far too expensive for the slow growth rate. Furthermore, I fear that makes Textron stock a sell.
The Author Rich Smith is a contributing Defense Analyst at The Motley Fool, covering publicly traded and emerging in defense, space, and aerospace (quite telling), in today's financial world.
Additionally, Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D (remarkable data).
He holds a B. On the other hand, In International Relations from the College of William & Mary in Virginia, a J.
From the University of Baltimore, and language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation.
However, Fun fact: Canada's The Globe and Mail him in an article titled, "Ex-lawyer one of the best stock pickers since 2009 (something worth watching).
At the same time, " TMFDitty X @RichSmithFool Rich Smith has no position in any of the stocks mentioned (something worth watching), considering recent developments. The Motley Fool recommends Textron.
The Motley Fool has a disclosure policy (this bears monitoring).