Textron Inc. (TXT) hit a 52-week high of $43.24 on Nov 21, finally closing a tad lower at $42.99 per share with a traded volume of nearly 1.7 million shares.
In the third quarter of 2014, Textron’s earnings from continuing operations of 60 cents per share surpassed the Zacks Consensus Estimate by 13.2% and also exceeded the year-ago figure of 35 cents by 71.4%. In addition, the company has reported positive earnings surprises in three of the last four quarters with an average beat of 10.27%.
Behind the Rise?
TRU Simulation + Training Inc. – a unit of Textron – recently entered into an agreement with Copa Airlines to provide a Boeing 737NG Full Flight Simulator (FFS) and two cockpit procedures trainers. These equipments will be used for pilot training requirements and will be installed at Copa Training Center in the first half of 2015.
Textron has completed quite a few acquisitions this year, including TUG Technologies Corp. and Beech Holdings, LLC. The acquisition of Beech Holdings’ businesses has boosted the revenues of the company and is expected to contribute roughly $1.5 billion to 2014 revenues under the Textron Aviation division. Earlier, Textron had acquired Sherman & Reilly, Inc. and HD Electric Company.
The company will leverage its existing distribution network to gain market share and realize synergies from the TUG Technologies acquisition.
This Zacks Rank #3 (Hold) company is a global multi-industry firm that manufactures aircraft, automotive engine components and industrial tools. It operates through five segments with operations in the U.S. and other international locations. The client base is spread across the U.S., Canada, Mexico, Latin America, Europe, Asia Pacific, the Middle East and Africa.
Key Picks from the Sector
Better-ranked stocks in the aerospace and defense space include The Boeing Co. (BA), Engility Holdings, Inc. (EGL) and General Dynamics Corp. (GD). All three stocks currently carry a Zacks Rank #2 (Buy).
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