Shares of aircraft maker and industrial conglomerate Textron Inc. rose 3% in premarket trade Wednesday, after the company stronger-than-expected profit for the first quarter. Textron said it had adjusted per-share earnings of 46 cents a share, ahead of the FactSet consensus of 45 cents. But revenue of $3.1 billion was down 3.4% from the year-earlier quarter, and shy of the FactSet consensus of $3.2 billion. The company lowered its full-year outlook to reflect the cost of the acquisition of all-terrain vehicle maker Arctic Cat. Analyst Robert Stallard at Vertical Research Partners said the miss and lowered guidance were likely exaggerated by "stale sell-side estimates". Stallard said it was interesting to note that "the aviation division's backlog was stable at the quarter end at $1 billion, suggesting a 1 time book to bill," he said. A book-to-bill ratio is a measure of the number of orders received relative to the amount billed for a certain period, reflecting the strength of a sector. Stallard said a rise in jet deliveries in the quarter was another sign of stability. Textron shares have gained 2.5% in 2017, while the S&P 500 has gained 4.6%.
Copyright © 2017 MarketWatch, Inc.
Continue Reading Below