Textron (NYSE:TXT) is expected to report Q2 earnings Thursday, July 17 before market open, with a conference call scheduled for 9:00 am ET.
Analysts are looking for EPS of 97c on revenue of $3.75B. The consensus range is 95c to 99c for EPS, and $3.31B to $3.83B for revenue, according to First Call. Textron gave guidance when it reported its Q1 earnings in April, but restated that guidance with a tighter range on June 13. The company expects Q2 EPS of 93c to 97c vs. consensus of 98c, and expects FY08 EPS of $3.80 to $4.00 vs. consensus of $3.98.
During the quarter the company experienced some share weakness on concerns of Textron Financial's performance. On June 16, Gabelli downgraded the stock to Hold from Buy, because they expect credit performance at Textron Financial to deteriorate further during the rest of 2008.
Citigroup said on June 17 that it attributed the share weakness to concerns over Textron Financial Corp and fears that deteriorating economic activity and rising commodity costs will weigh on the growth prospects. However, the firm believes risks are substantially discounted at current levels and see an attractive entry point. The firm views the weakness as a buying opportunity and maintained its Buy rating for Textron.