Shares of Textron Inc. (NYSE:TXT) gained after the company posted first-quarter profit that beat estimates and said it will sell its tool and test business to Emerson Electric Co. (NYSE:EMR) for US$810mln.
The stock advanced 6.7% to US$63.99 at 10:10 a.m.
Net income rose to US$189mln, or US$0.72 a share, from US$101mln, or US$0.37 a share, a year earlier, the company said in a statement. That beat the average analyst estimate of 48 cents, according to FactSet.
Textron said the proceeds from the unit disposal will be used to fund additional share repurchases to offset the earnings impact related to the sale.
Textron also reiterated its 2018 forecast of earnings per share of US$2.95 to US$3.15.