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Shares of Textron dip after earnings, guidance miss

Textron Inc. Fury munitions are displayed on the exhibit floor during the Special Operations Forces Industry Conference (SOFIC) in Tampa, Florida, U.S., on Wednesday, May 25, 2016.
Luke Sharrett | Bloomberg | Getty Images

Shares of Textron sunk more than 8 percent on Wednesday after the company reported a fourth-quarter earnings miss.

The aircraft industry company reported earnings of 80 cents per share, while a consensus of Thomson Reuters analysts expected 87 cents per share. Revenue for the quarter was down 2.5 percent at $3.8 billion, versus the expected revenue of $4.05 billion.

Textron also said it expects full-year 2017 earnings of $2.50 to $2.70 per share on revenue of $14.3 billion, below analysts' expectations of $2.93 per share on $14.39 billion in revenue.

"Overall, revenues were down in the quarter but we were encouraged by increasing demand at Industrial and strong operating performance at Bell," said Textron chairman and CEO Scott Donnelly in a press release.

Textron also announced its acquisition of Arctic Cat for $247 million, or $18.50 a share, in an all-cash transaction.

Arctic Cat shares skyrocketed over 40 percent to $18.48 a share. The stock has a market cap of $170 million.

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