Textron Q1 Earnings Report: Why Did the Stock Drop 12%?

Textron Q1 earnings report

The earnings numbers above are all non-GAAP -- which is to say they don't count costs that the company considers 'one-time' in nature. When calculated according to generally accepted accounting principles (GAAP), Textron's earnings were actually only $1.03 per share, which was less than the non-GAAP number, and may have disappointed investors. Still, it's a respectable 12% improvement over Q1 2023 numbers -- not too shabby considering sales grew less than 4%.

Changes at Textron

Textron grew sales and earnings in three of its four biggest segments (aviation, Bell helicopters, and 'systems,' the division that builds drones and armored cars). Only the company's industrial division suffered a sales and earnings decline. The biggest change, however, was the fact that Textron's share count fell 6% year over year, as the company continued buying back stock. (This also helped drive earnings per share higher, as net profits were divvied up among fewer shares.)

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