Back to top

Image: Bigstock

TransDigm (TDG) Q1 Earnings Beat Estimates, '23 EPS View Up

Read MoreHide Full Article

TransDigm Group Incorporated (TDG - Free Report) has reported first-quarter fiscal 2023 adjusted earnings of $4.58 per share, which beat the Zacks Consensus Estimate of $4.31 by 6.3%. The bottom line improved by a solid 52.7% from the prior-year reported figure of $3 per share.

Barring one-time items, the company has reported GAAP earnings of $3.33 per share compared with $1.96 generated in the year-ago quarter.

Sales

Net sales amounted to $1,397 million in the fiscal first quarter, a 17% increase from $1,194 million in the prior-year quarter. The reported figure also beat the Zacks Consensus Estimate of $1,364 million by 2.4%.

Transdigm Group Incorporated Price, Consensus and EPS Surprise

 

Transdigm Group Incorporated Price, Consensus and EPS Surprise

Transdigm Group Incorporated price-consensus-eps-surprise-chart | Transdigm Group Incorporated Quote

Operating Results

The gross profit for the quarter was $793 million, a 20% increase from the year-ago quarter’s $661 million.

The income from continuing operations increased 40.5% year over year to $229 million. The increase in the income from continuing operations was primarily due to a rise in net sales and a favorable sales mix.

Financial Position

TransDigm’s cash and cash equivalents as of Dec 31, 2022, were $3,288 million, up from $3,001 million as of Sep 30, 2022.

At the end of the fiscal first quarter, TDG’s long-term debt was $19.38 billion compared with $19.37 billion as of Sep 30, 2022.

Cash from operating activities amounted to $377 million for the fiscal first quarter compared with $279 million at the end of first-quarter fiscal 2022.

Guidance

TransDigm has updated its financial guidance for fiscal 2023. The company expects sales of $6,070-$6,240 million compared with the prior mentioned $5,990-$6,190 million. The Zacks Consensus Estimate for the company’s full-year sales, pegged at $6.05 billion, is lower than the company’s guided range.

The company also expects fiscal 2023 adjusted earnings of $21.47-$22.87 per share, up from the prior stated $20.68-$22.08 per share. The Zacks Consensus Estimate for its full-year earnings is pegged at $21.66 per share, lower than the mid-point of the company’s guided range.

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.

Recent Defense Releases

Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2022 adjusted earnings of $7.79 per share, which surpassed the Zacks Consensus Estimate of $7.41 by 5.1%. The bottom line also improved 7.9% year over year.

In the reported quarter, net sales amounted to $19 billion, which surpassed the Zacks Consensus Estimate of $18.25 billion by 4.1%. The top line rose 7.3% from the year-ago quarter’s reported figure of $17.7 billion.

Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2022 adjusted earnings per share (EPS) of $1.27 beat the Zacks Consensus Estimate of $1.24 per share by 2.4%. Moreover, the bottom line improved 18% from the year-ago quarter’s reported figure.

Raytheon Technologies’ fourth-quarter sales of $18,093 million missed the Zacks Consensus Estimate of $18,196 million by 0.6%. The sales figure, however, rose 6% from $17,044 million recorded in the year-ago quarter.

General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2022 EPS of $3.58, which beat the Zacks Consensus Estimate of $3.53 per share by 1.4%. Quarterly earnings increased 5.6% from $3.39 per share in the year-ago quarter.

General Dynamics’ fourth-quarter revenues of $10,851 million beat the Zacks Consensus Estimate of $10,674 million by 1.7%. Revenues also improved 5.4% from the year-ago quarter.


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.


Click Here, It's Really Free

Published in