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Will Higher Interest Income Aid TransDigm's (TDG) Q3 Results?
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TransDigm Group Incorporated (TDG - Free Report) is slated to report third-quarter fiscal 2024 results on Aug 6, before market open.
TransDigm delivered a trailing four-quarter average earnings surprise of 10.46%. The improving growth trends in commercial air travel and strong defense sales are likely to have bolstered the quarterly results.
Power & Control Segment to Remain Robust
Strong sales from the commercial aftermarket, backed by steadily improving commercial air travel demand and the resulting higher flight hours and utilization of aircraft, are likely to have contributed favorably to revenues from the Power & Control segment. Improved sales from the commercial original equipment manufacturer (OEM) businesses, driven by solid deliveries of both narrow-body and wide-body aircraft, are also expected to have bolstered this segment’s top line.
Transdigm Group Incorporated Price and EPS Surprise
Also, an improving U.S. government defense spending trend is likely to have added an impetus to TDG’s defense business sales. This, in turn, must have boosted this segment’s overall revenue performance.
The Zacks Consensus Estimate for the Power & Control segment’s fiscal third-quarter revenues is pegged at $991.8 million, indicating a 15.2% improvement from the year-ago quarter’s reported figure.
Airframe Segment Likely to Report Revenue Growth
Sales from the Airframe segment are likely to have been boosted by the strong air travel growth as well as growing demand for this unit’s defense products, backed by solid government funding support.
The Zacks Consensus Estimate for the segment’s fiscal third-quarter revenues is pegged at $934.7 million, indicating 11.9% growth from the prior-year quarter’s reported actuals.
Q3 Estimates
Strong sales expectations from both of its primary segments, which constitute approximately 97% of TDG’s total revenues, must have bolstered its overall quarterly revenue performance. The Zacks Consensus Estimate for sales is pegged at $1.99 billion, indicating an improvement of 14.4% from the prior-year recorded number.
A strong top line is likely to have boosted TDG’s overall margin performance, thereby contributing favorably to its quarterly bottom line. Also higher interest income projected for the remaining quarters of fiscal 2024 must have contributed favorably to TDG’s overall earnings performance in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $8.45 per share, indicating an increase of 16.6% from the year-ago reported figure.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for TransDigm 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, which is the case here.
Earnings ESP: The company’s Earnings ESP is +1.41%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Below is another defense stock that has the right combination of elements to post an earnings beat this reporting cycle.
Curtiss-Wright (CW - Free Report) is slated to release second-quarter results on Aug 7. CW has an Earnings ESP of +2.42% and a Zacks Rank #3 at present.
Curtiss-Wright delivered an average earnings surprise of 9.07% in the trailing four quarters. The consensus estimate for second-quarter earnings is pegged at $2.24 per share, while that for sales is pinned at $736.2 million.
Recent Defense Releases
Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2024 adjusted earnings of $4.58 per share, which surpassed the Zacks Consensus Estimate of $4.49 by 2%. However, the bottom line declined 1.9% from $4.67 recorded in the year-ago quarter.
Total sales were $1.37 billion, which missed the Zacks Consensus Estimate of $1.38 billion by 0.2%. The top line also declined 3.6% from $1.42 billion reported in the year-ago quarter.
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2024 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.45 by 10.2%. The bottom line also improved 5.6% from the year-ago quarter's recorded figure of $6.73.
Net sales were $18.12 billion, which surpassed the Zacks Consensus Estimate of $17.10 billion by 6%. The top line also increased 8.6% from $16.69 billion reported in the year-ago quarter.
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Will Higher Interest Income Aid TransDigm's (TDG) Q3 Results?
TransDigm Group Incorporated (TDG - Free Report) is slated to report third-quarter fiscal 2024 results on Aug 6, before market open.
TransDigm delivered a trailing four-quarter average earnings surprise of 10.46%. The improving growth trends in commercial air travel and strong defense sales are likely to have bolstered the quarterly results.
Power & Control Segment to Remain Robust
Strong sales from the commercial aftermarket, backed by steadily improving commercial air travel demand and the resulting higher flight hours and utilization of aircraft, are likely to have contributed favorably to revenues from the Power & Control segment. Improved sales from the commercial original equipment manufacturer (OEM) businesses, driven by solid deliveries of both narrow-body and wide-body aircraft, are also expected to have bolstered this segment’s top line.
Transdigm Group Incorporated Price and EPS Surprise
Transdigm Group Incorporated price-eps-surprise | Transdigm Group Incorporated Quote
Also, an improving U.S. government defense spending trend is likely to have added an impetus to TDG’s defense business sales. This, in turn, must have boosted this segment’s overall revenue performance.
The Zacks Consensus Estimate for the Power & Control segment’s fiscal third-quarter revenues is pegged at $991.8 million, indicating a 15.2% improvement from the year-ago quarter’s reported figure.
Airframe Segment Likely to Report Revenue Growth
Sales from the Airframe segment are likely to have been boosted by the strong air travel growth as well as growing demand for this unit’s defense products, backed by solid government funding support.
The Zacks Consensus Estimate for the segment’s fiscal third-quarter revenues is pegged at $934.7 million, indicating 11.9% growth from the prior-year quarter’s reported actuals.
Q3 Estimates
Strong sales expectations from both of its primary segments, which constitute approximately 97% of TDG’s total revenues, must have bolstered its overall quarterly revenue performance. The Zacks Consensus Estimate for sales is pegged at $1.99 billion, indicating an improvement of 14.4% from the prior-year recorded number.
A strong top line is likely to have boosted TDG’s overall margin performance, thereby contributing favorably to its quarterly bottom line. Also higher interest income projected for the remaining quarters of fiscal 2024 must have contributed favorably to TDG’s overall earnings performance in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $8.45 per share, indicating an increase of 16.6% from the year-ago reported figure.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for TransDigm 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, which is the case here.
Earnings ESP: The company’s Earnings ESP is +1.41%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: TransDigm carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
A Stock to Consider
Below is another defense stock that has the right combination of elements to post an earnings beat this reporting cycle.
Curtiss-Wright (CW - Free Report) is slated to release second-quarter results on Aug 7. CW has an Earnings ESP of +2.42% and a Zacks Rank #3 at present.
Curtiss-Wright delivered an average earnings surprise of 9.07% in the trailing four quarters. The consensus estimate for second-quarter earnings is pegged at $2.24 per share, while that for sales is pinned at $736.2 million.
Recent Defense Releases
Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2024 adjusted earnings of $4.58 per share, which surpassed the Zacks Consensus Estimate of $4.49 by 2%. However, the bottom line declined 1.9% from $4.67 recorded in the year-ago quarter.
Total sales were $1.37 billion, which missed the Zacks Consensus Estimate of $1.38 billion by 0.2%. The top line also declined 3.6% from $1.42 billion reported in the year-ago quarter.
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2024 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.45 by 10.2%. The bottom line also improved 5.6% from the year-ago quarter's recorded figure of $6.73.
Net sales were $18.12 billion, which surpassed the Zacks Consensus Estimate of $17.10 billion by 6%. The top line also increased 8.6% from $16.69 billion reported in the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.