(Reuters) – Textron Inc on Thursday raised its full-year adjusted earnings forecast after beating estimates for quarterly profit, betting on demand for its business jets despite higher prices.
The Cessna parent now expects full-year adjusted profit per share of between $5.45 and $5.55, an improvement over its previous expectation of $5.20 to $5.30.
Demand for private jets remains resilient after surging during the pandemic when the wealthy took control of their travel as a result of public health concerns.
In September, Textron and NetJets signed an agreement, which analysts value at about $30 billion, giving the private jet firm owned by Berkshire Hathaway the option to buy up to 1,500 additional Cessna Citation business jets over the next 15 years.
Meanwhile, planemakers have raised prices to counter lingering supply chain and labor issues.
Orders at the aviation unit, Textron’s most profitable business, rose 12%, marking the strongest order quarter of the year, the company said on Thursday.
Revenue at Textron Aviation, which sold 39 jets in the quarter, rose 14.7% to $1.34 billion.
Overall quarterly revenue of $3.34 billion missed analysts’ estimate of $3.48 billion, as per LSEG data.
On adjusted basis, the company earned $1.49 per share, higher than the estimate of $1.29.
(Reporting by Mehr Bedi in Bengaluru; Editing by Shweta Agarwal and Sriraj Kalluvila)
