A report of the Stock Market on Thursday, Oct. 18, revealed that stocks dropped sharply, especially in the powersports industry.
Shares of Textron tumbled 11.3 percent after the company reported third-quarter results that missed expectations, largely because of issues in its non-military business. Revenue fell 8.2 percent to $3.2 billion, compared with analyst expectations for a 1.3 percent increase. GAAP earnings per share came in at $2.26, boosted by the sale of the company’s tools and test product line, but non-GAAP EPS fell 6.2 percent to $0.61, well below the $0.76 Wall Street was looking for.
Revenue from all of the company’s segments declined, but mostly due to expected reasons. Revenue from Textron Systems fell 23.2 percent, largely because the company is nearing the end of its Tactical Armored Patrol Vehicle program. Industrial segment revenue was down 10.7 percent due to the divestiture. Bell revenue fell 5.2 percent and Textron Aviation was down 1.8 percent.
Textron company officials on the conference call expressed disappointment with execution by the business producing specialty vehicles for consumer markets. The unit has been integrating Textron’s acquisition of Arctic Cat, and the roll-out of a new line of all-terrain vehicles failed to generate expected levels of sell-through due to poor channel management. Textron replaced the manager of the segment last week.