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TransDigm's (TDG) Q3 Earnings Beat Estimates, Sales Up Y/Y
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TransDigm Group Incorporated (TDG - Free Report) reported third-quarter fiscal 2021 adjusted earnings of $3.33 per share, which surpassed the Zacks Consensus Estimate of $2.99 by 11.4%. The bottom line also improved a solid 116% from $1.54 reported a year ago.
Barring one-time items, the company reported GAAP earnings of $5.43 per share against loss of 9 cents incurred in the year-ago quarter.
This year-over-year improvement can be attributed to increase in net sales described, lower effective tax rate, the net gain on sale recognized as a result of the divestitures completed during the fiscal third quarter and lower COVID-19 restructuring costs.
Transdigm Group Incorporated Price, Consensus and EPS Surprise
Net sales amounted to $1,218 million, increasing 19.2% from $1,022 million in the prior-year quarter. The reported figure also outpaced the Zacks Consensus Estimate of $1,201 million by 1.4%.
Operating Results
Gross profit for the quarter surged 33.4% to $655 million from $491 million in the comparable quarter a year ago.
Consequently, income from operations increased 56.3% year over year to $447 million.
Financial Position
TransDigm ended the third quarter of fiscal 2021 with cash and cash equivalents of $4,529 million, down from $4,717 million as of Sep 30, 2020.
At the end of the reported quarter, the company’s long-term debt was $19.38 billion, in line with the long-term debt level as of Sep 30, 2020.
Cash from operating activities amounted to $624 million as of Jul 3, 2021, compared with $991 million as of Jun 27, 2020.
Fiscal 2021 Outlook
Given the considerable uncertainty around the extent and duration of business disruptions related to the COVID-19 pandemic, and how those will continue to impact operations, TransDigm did not provide fiscal 2021 guidance this time.
Curtiss-Wright (CW - Free Report) reported second-quarter 2021 adjusted earnings of $1.56 per share, which surpassed the Zacks Consensus Estimate of $1.53 by 2%.
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%.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2021 adjusted earnings of 8 cents per share, which surpassed the Zacks Consensus Estimate of a penny.
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TransDigm's (TDG) Q3 Earnings Beat Estimates, Sales Up Y/Y
TransDigm Group Incorporated (TDG - Free Report) reported third-quarter fiscal 2021 adjusted earnings of $3.33 per share, which surpassed the Zacks Consensus Estimate of $2.99 by 11.4%. The bottom line also improved a solid 116% from $1.54 reported a year ago.
Barring one-time items, the company reported GAAP earnings of $5.43 per share against loss of 9 cents incurred in the year-ago quarter.
This year-over-year improvement can be attributed to increase in net sales described, lower effective tax rate, the net gain on sale recognized as a result of the divestitures completed during the fiscal third quarter and lower COVID-19 restructuring costs.
Transdigm Group Incorporated Price, Consensus and EPS Surprise
Transdigm Group Incorporated price-consensus-eps-surprise-chart | Transdigm Group Incorporated Quote
Sales
Net sales amounted to $1,218 million, increasing 19.2% from $1,022 million in the prior-year quarter. The reported figure also outpaced the Zacks Consensus Estimate of $1,201 million by 1.4%.
Operating Results
Gross profit for the quarter surged 33.4% to $655 million from $491 million in the comparable quarter a year ago.
Consequently, income from operations increased 56.3% year over year to $447 million.
Financial Position
TransDigm ended the third quarter of fiscal 2021 with cash and cash equivalents of $4,529 million, down from $4,717 million as of Sep 30, 2020.
At the end of the reported quarter, the company’s long-term debt was $19.38 billion, in line with the long-term debt level as of Sep 30, 2020.
Cash from operating activities amounted to $624 million as of Jul 3, 2021, compared with $991 million as of Jun 27, 2020.
Fiscal 2021 Outlook
Given the considerable uncertainty around the extent and duration of business disruptions related to the COVID-19 pandemic, and how those will continue to impact operations, TransDigm did not provide fiscal 2021 guidance this time.
Zacks Rank
TransDigm currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Defense Releases
Curtiss-Wright (CW - Free Report) reported second-quarter 2021 adjusted earnings of $1.56 per share, which surpassed the Zacks Consensus Estimate of $1.53 by 2%.
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%.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2021 adjusted earnings of 8 cents per share, which surpassed the Zacks Consensus Estimate of a penny.