Why Textron (TXT) Is Gaining Today

NEW YORK (TheStreet) -- Textron (TXT) shares gained 6.5% to reach $38.46 Wednesday following a positive earnings report.

The aerospace conglomerate reported earnings of 59 cents a share in the fourth quarter, which matches the Capital IQ consensus of 59 cents. Textron beat the consensus revenue estimates, reporting a 4.3% increase year over year to $3.51 billion compared to the consensus of $3.44 billion for the quarter.

Textron also issued guidance for 2014 that comes close to Capital IQ consensus. The conglomerate expects 2014 earnings between $2 and $2.20, compared to the consensus estimate of $2.20 a share. Textron expects revenue of about $13.2 billion in 2014. The consensus estimate calls for revenue of $13.23 billion.

Projections for 2014 do not include Textron's acquisition of Beechcraft, which is expected to close in the first half of 2014.

TheStreet Ratings team rates TEXTRON INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate TEXTRON INC (TXT) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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