Textron Inc. (TXT - Get Report)  shares are paring some losses as other defense stocks reverse course on Wednesday, July 18, after reporting better-than-expected second-quarter results and raising its full-year earnings guidance.

The Providence, R.I.-based aerospace and defense company reported earnings of 87 cents per share on revenue of $3.73 billion, which topped analysts' expectations of earnings of 70 cents per share on revenue of $3.52 billion, according to FactSet.

"Operationally, we saw continued strength in our execution with margin improvements at Aviation, Systems, and Bell," said Textron Chairman and CEO Scott Donnelly. "We are encouraged by revenue growth resulting from improving commercial demand across many of our end markets."

The company, which is a holding in Jim Cramer's charitable trust, Action Alerts PLUS, raised its full-year earnings guidance to be in a range of $3.15 to $3.35 per share, up 20 cents from its previous outlook. Textron also expects full-year cash flow from manufacturing operations and before pension contributions to be between $750 million to $850 million, an increase of $50 million from its previous forecast.

Shares of Textron fell 1.6% to $65.74 at 12:30 p.m. New York time. The stock had climbed by as much as 4% during pre-market trading but erased all gains and tumbled nearly 4% during the morning trading session. Textron shares are up about 10% over the last three months, and about 15% for the year so far, three times as much as the S&P 500.

"We think the stock's drop in early trading Wednesday is a misrepresentation of both the quarter and of management's positive outlook," Cramer and the AAP team wrote in a note to subscribers. "So, we're pouncing on this opportunity to pick up some additional shares on weakness, as we believe Textron's long-term story remains intact."

Zev Fima, an AAP analyst, said the portfolio team likes Textron for its Bell helicopter unit and noted that the Army is considering replacing its current fleet of helicopters with the Textron helicopter.