We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in the Cards for TransDigm Group (TDG) in Q3 Earnings?
Read MoreHide Full Article
TransDigm Group Incorporated (TDG - Free Report) is expected to report its third-quarter fiscal 2021 results soon.
In the last reported quarter, the company delivered an earnings surprise of 2.38%. Moreover, it surpassed the Zacks Consensus Estimate in three out of the trailing four quarters and missed the same once, delivering an earnings surprise of 26.08%, on average.
Let’s see how things have shaped up prior to this announcement.
Factors to Consider
Over the past few months, the commercial aerospace industry has been showing signs of recovery buoyed by ramped up distribution of the COVID-19 vaccine and increasing air traffic, especially in certain domestic markets. This has been boosting TransDigm’s commercial aftermarket revenues, a trend we expect to have prevailed in the fiscal third quarter as well. This in turn is expected to have favorably contributed to the company’s overall top-line performance in the third quarter of fiscal 2021.
Transdigm Group Incorporated Price and EPS Surprise
Cushioned by government support, we expect the company’s defense market revenues to have witnessed solid growth trends in the soon-to-be-reported quarter.
In May 2021, Airbus announced ramp up in production rate of its A320 jets, which in turn might have boosted bookings for TransDigm’s products used in A320 manufacturing. We expect the upcoming results to duly reflect such optimistic trends.
Notably, the Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $1.22 billion, indicating an improvement of 19.2% from third-quarter fiscal 2020.
Such encouraging sales projections make us optimistic about the company’s fiscal third-quarter earnings. Moreover, the company’s cost management initiatives are expected to have boosted its quarterly bottom line.
During the fiscal second quarter, TransDigm acquired the Cobham Aero Connectivity business. We expect positive synergies from this transaction to have contributed to the company’s earnings in the fiscal third quarter.
The Zacks Consensus Estimate for earnings stands at $2.99 per share, implying a sharp increase of 94.2% from the year-ago quarter’s reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for TransDigm Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here.
Earnings ESP: The company’s Earnings ESP is -0.73%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are a couple of defense companies you may want to consider as these have the right combination of elements to post an earnings beat in its upcoming releases:
L3Harris Technologies (LHX - Free Report) has an Earnings ESP of +0.43% and a Zacks Rank #3.
Leidos Holdings (LDOS - Free Report) has an Earnings ESP of +4.46% and a Zacks Rank #2.
Recent Defense Release
Raytheon Technologies’ (RTX - Free Report) second-quarter 2021 adjusted earnings per share of $1.23 outpaced the Zacks Consensus Estimate of 92 cents by 33.7%.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
What's in the Cards for TransDigm Group (TDG) in Q3 Earnings?
TransDigm Group Incorporated (TDG - Free Report) is expected to report its third-quarter fiscal 2021 results soon.
In the last reported quarter, the company delivered an earnings surprise of 2.38%. Moreover, it surpassed the Zacks Consensus Estimate in three out of the trailing four quarters and missed the same once, delivering an earnings surprise of 26.08%, on average.
Let’s see how things have shaped up prior to this announcement.
Factors to Consider
Over the past few months, the commercial aerospace industry has been showing signs of recovery buoyed by ramped up distribution of the COVID-19 vaccine and increasing air traffic, especially in certain domestic markets. This has been boosting TransDigm’s commercial aftermarket revenues, a trend we expect to have prevailed in the fiscal third quarter as well. This in turn is expected to have favorably contributed to the company’s overall top-line performance in the third quarter of fiscal 2021.
Transdigm Group Incorporated Price and EPS Surprise
Transdigm Group Incorporated price-eps-surprise | Transdigm Group Incorporated Quote
Cushioned by government support, we expect the company’s defense market revenues to have witnessed solid growth trends in the soon-to-be-reported quarter.
In May 2021, Airbus announced ramp up in production rate of its A320 jets, which in turn might have boosted bookings for TransDigm’s products used in A320 manufacturing. We expect the upcoming results to duly reflect such optimistic trends.
Notably, the Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $1.22 billion, indicating an improvement of 19.2% from third-quarter fiscal 2020.
Such encouraging sales projections make us optimistic about the company’s fiscal third-quarter earnings. Moreover, the company’s cost management initiatives are expected to have boosted its quarterly bottom line.
During the fiscal second quarter, TransDigm acquired the Cobham Aero Connectivity business. We expect positive synergies from this transaction to have contributed to the company’s earnings in the fiscal third quarter.
The Zacks Consensus Estimate for earnings stands at $2.99 per share, implying a sharp increase of 94.2% from the year-ago quarter’s reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for TransDigm Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here.
Earnings ESP: The company’s Earnings ESP is -0.73%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: TransDigm Group carries a Zacks Rank #3 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a couple of defense companies you may want to consider as these have the right combination of elements to post an earnings beat in its upcoming releases:
L3Harris Technologies (LHX - Free Report) has an Earnings ESP of +0.43% and a Zacks Rank #3.
Leidos Holdings (LDOS - Free Report) has an Earnings ESP of +4.46% and a Zacks Rank #2.
Recent Defense Release
Raytheon Technologies’ (RTX - Free Report) second-quarter 2021 adjusted earnings per share of $1.23 outpaced the Zacks Consensus Estimate of 92 cents by 33.7%.