Hedgeye will host a call October 11th (at 11:00 a.m. ET) to review our LONG thesis on Textron Inc. (TXT).
We will be collaborating with Hedgeye Potomac Defense Policy head LtGen Emerson "Emo" Gardner USMC ret. to provide a multifaceted view of Textron's longer-term prospects. LtGen Gardner brings unique insight into key TXT programs, like the V-22 and V-280.
KEY DISCUSSION POINTS:
- Favorable Asymmetric Set-up: With key segment results already depressed, TXT shares appear to price in ongoing weakness, missing what can go "right".
- Significant Aftermarket Sales, Existing Orders, FMS Potential: TXT should benefit from a well-developed installed base and sales pipeline.
- Restructuring Underway: Management is already focused on opportunities within Industrial & Systems segments, with modest charges expected in 2H16.
- Strong Platforms For Growth: New product introductions and potential product development, like tiltrotor drones, should add to TXT's already strong franchises.
Lieutenant General Emerson N. Gardner, USMC, (ret.) is a recognized expert on the Department of Defense programming and budgeting process. He is the Senior Defense Analyst at Potomac Research Group in Washington, DC and has an independent consulting practice.
From 2007 to 2010 LtGen Gardner was the Principal Deputy Director and acting Director of Cost Assessment and Program Evaluation for the Office of the Secretary of Defense. In this billet he led independent evaluations of all major defense programs and managed the development of the Department of Defense's $3 Trillion, six year Future Year Defense Plan. In his book "Call to Duty", Secretary of Defense Robert Gates cited General Gardner as his "go to guy on the budget." Gardner had previously been the Deputy Commandant of the Marine Corps for Programs and Resources where he was directly responsible for the development and execution of all aspects of the Corps' $33 Billion annual budget.
For more information please go to www.hedgeye.com.
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