Shares of Tile Shop Holdings Inc. (TTS, Financial) fell more than 4% on Thursday after announcing third-quarter results. The company posted earnings of 5 cents per share on $89.26 billion in revenue, a 5.7% year-over-year growth. It beat earnings estimates by 1 cent and revenue expectations by $2.14 million.
During the quarter, the gross profit increased $6.3 million, or 11.2%, to $63 million from $56.7 million a year ago. The gross margin was 70.6%, up from 67.1% in the prior-year quarter. The improvement was due to a decline in promotional activity.
Adjusted earnings before interest, taxes, depreciation and amortization for the third quarter was $11.9 million, compared with $12.2 million in the year-ago quarter.
Further, the board of directors declared a quarterly dividend of 5 cents per common share.
Looking ahead, the company updated its annual outlook. It expects 2018 capital investments of $35 million and inventory between $106 million and $110 million.
Shares of Textron Inc. (TXT, Financial) plunged 11% after posting third-quarter earnings of 61 cents per share on $3.2 billion in revenue, an 8% year-over-year decline.
By segment, revenues at Textron Aviation were $1.1 billion, down 2% due to lower volume and mix, reflecting lower turboprop volume. Bell revenues were $770 million, down 5% primarily due to commercial mix despite higher military revenues. Sales at Textron Systems were $352 million, down from $458 million last year, reflecting lower TAPV deliveries at Textron Marine & Land Systems and lower volume in the Simulation, Training and Other product lines. Industrial revenues declined $112 million and the Finance segment's sales were down $3 million.
The company now expects full-year earnings per share between $4.81 and $4.91, or $3.20 to $3.30 on an adjusted basis. It also reaffirmed its full-year manufacturing cash flow before pension contributions in the range of $750 million to $850 million.
Disclosure: The author holds no positions in any stocks mentioned.
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