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.
TransDigm (TDG) Beats on Q2 Earnings, Ups '24 Sales View
Read MoreHide Full Article
TransDigm Group Incorporated (TDG - Free Report) reported second-quarter fiscal 2024 adjusted earnings of $7.99 per share, which beat the Zacks Consensus Estimate of $7.37 by 8.4%. The bottom line also improved 33.6% from the prior-year quarter’s reported figure of $5.98.
Barring one-time items, the company recorded GAAP earnings of $6.97 per share compared with $5.32 in the year-ago quarter.
Sales
Net sales amounted to $1.92 billion, up 20.5% from $1.59 billion registered in the prior-year period. The reported figure also beat the Zacks Consensus Estimate of $1.89 billion by 1.8%.
Transdigm Group Incorporated Price, Consensus and EPS Surprise
The gross profit for the quarter came in at $1.15 billion, up 24% from the year-ago quarter’s level of $929 million.
Net income increased 32.9% year over year to $404 million. The growth was primarily driven by an increase in net sales and the application of the company’s value-driven operating strategy.
Financial Position
Cash and cash equivalents as of Mar 30, 2024, amounted to $4.29 billion, up from $3.47 billion as of Sep 30, 2023.
Long-term debt totaled $21.33 billion compared with $19.33 billion as of Sep 30, 2023.
Cash from operating activities amounted to $865 million compared with $507 million at the end of the second quarter of fiscal 2023.
Guidance
TransDigm raised its guidance for fiscal 2024. The company now expects sales in the range of $7.68-$7.80 billion, up from the earlier guidance of $7.48-$7.68 billion. The Zacks Consensus Estimate for the same is pegged at $7.70 billion, lower than the midpoint of the company’s guided range.
TDG currently expects fiscal 2024 adjusted earnings in the band of $31.75-$33.09 per share, up from the prior guidance of $31.00-$32.94. The Zacks Consensus Estimate for earnings is pegged at $31.45 per share, lower than the company’s guided range.
General Dynamics Corporation (GD - Free Report) reported first-quarter 2024 earnings per share (EPS) of $2.88, which missed the Zacks Consensus Estimate of $2.89 by 0.4%. However, the figure increased 9.1% from $2.64 per share recorded in the year-ago quarter.
GD’s revenues of $10,731 million beat the Zacks Consensus Estimate of $10,201 million by 5.2%. The top line also improved 8.6% from the prior-year reported figure.
RTX Corporation’s (RTX - Free Report) first-quarter 2024 adjusted EPS of $1.34 beat the Zacks Consensus Estimate of $1.23 by 8.9%. The bottom line also improved 9.8% from the year-ago quarter’s level of $1.22.
RTX’s net sales were $19,305 million, which surpassed the Zacks Consensus Estimate of $18,412.6 million by 4.8%. The top line also improved 12% from $17,214 million recorded in the first quarter of 2023.
Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2024 adjusted earnings of $6.33 per share, which beat the Zacks Consensus Estimate of $5.80 by 9.1%. The bottom line, however, declined 1.6% from the year-ago quarter's recorded figure of $6.43.
LMT’s net sales were $17.20 billion, which beat the Zacks Consensus Estimate of $16.19 billion by 6.2%. The top line also increased 13.7% from $15.13 billion reported a year ago.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
TransDigm (TDG) Beats on Q2 Earnings, Ups '24 Sales View
TransDigm Group Incorporated (TDG - Free Report) reported second-quarter fiscal 2024 adjusted earnings of $7.99 per share, which beat the Zacks Consensus Estimate of $7.37 by 8.4%. The bottom line also improved 33.6% from the prior-year quarter’s reported figure of $5.98.
Barring one-time items, the company recorded GAAP earnings of $6.97 per share compared with $5.32 in the year-ago quarter.
Sales
Net sales amounted to $1.92 billion, up 20.5% from $1.59 billion registered in the prior-year period. The reported figure also beat the Zacks Consensus Estimate of $1.89 billion by 1.8%.
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 came in at $1.15 billion, up 24% from the year-ago quarter’s level of $929 million.
Net income increased 32.9% year over year to $404 million. The growth was primarily driven by an increase in net sales and the application of the company’s value-driven operating strategy.
Financial Position
Cash and cash equivalents as of Mar 30, 2024, amounted to $4.29 billion, up from $3.47 billion as of Sep 30, 2023.
Long-term debt totaled $21.33 billion compared with $19.33 billion as of Sep 30, 2023.
Cash from operating activities amounted to $865 million compared with $507 million at the end of the second quarter of fiscal 2023.
Guidance
TransDigm raised its guidance for fiscal 2024. The company now expects sales in the range of $7.68-$7.80 billion, up from the earlier guidance of $7.48-$7.68 billion. The Zacks Consensus Estimate for the same is pegged at $7.70 billion, lower than the midpoint of the company’s guided range.
TDG currently expects fiscal 2024 adjusted earnings in the band of $31.75-$33.09 per share, up from the prior guidance of $31.00-$32.94. The Zacks Consensus Estimate for earnings is pegged at $31.45 per share, lower than the company’s guided range.
Zacks Rank
TransDigm currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
General Dynamics Corporation (GD - Free Report) reported first-quarter 2024 earnings per share (EPS) of $2.88, which missed the Zacks Consensus Estimate of $2.89 by 0.4%. However, the figure increased 9.1% from $2.64 per share recorded in the year-ago quarter.
GD’s revenues of $10,731 million beat the Zacks Consensus Estimate of $10,201 million by 5.2%. The top line also improved 8.6% from the prior-year reported figure.
RTX Corporation’s (RTX - Free Report) first-quarter 2024 adjusted EPS of $1.34 beat the Zacks Consensus Estimate of $1.23 by 8.9%. The bottom line also improved 9.8% from the year-ago quarter’s level of $1.22.
RTX’s net sales were $19,305 million, which surpassed the Zacks Consensus Estimate of $18,412.6 million by 4.8%. The top line also improved 12% from $17,214 million recorded in the first quarter of 2023.
Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2024 adjusted earnings of $6.33 per share, which beat the Zacks Consensus Estimate of $5.80 by 9.1%. The bottom line, however, declined 1.6% from the year-ago quarter's recorded figure of $6.43.
LMT’s net sales were $17.20 billion, which beat the Zacks Consensus Estimate of $16.19 billion by 6.2%. The top line also increased 13.7% from $15.13 billion reported a year ago.