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TransDigm (TDG) Beats on Q3 Earnings, Ups '24 Sales View
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TransDigm Group Incorporated (TDG - Free Report) reported third-quarter fiscal 2024 adjusted earnings of $9 per share, which beat the Zacks Consensus Estimate of $8.45 by 6.5%. The bottom line also improved 24.1% from the prior-year quarter’s reported figure of $7.25.
Barring one-time items, the company recorded GAAP earnings of $7.96 per share compared with $6.14 in the year-ago quarter.
The year-over-year improvement in bottom line can be attributed to improved sales, gross profit and operating income compared with the year-ago quarter’s level.
Transdigm Group Incorporated Price, Consensus and EPS Surprise
Net sales amounted to $2.05 billion, up 17.3% from $1.74 billion registered in the prior-year period. The reported figure also beat the Zacks Consensus Estimate of $1.99 billion by 2.6%.
Organic sales as a percentage of net sales grew 14.6%.
Operating Results
The gross profit for the quarter came in at $1.22 billion, up 18.6% from the year-ago quarter’s level of $1.03 billion.
Net income increased 31.3% year over year to $461 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 Jun 29, 2024, amounted to $3.36 billion, down from $3.47 billion recorded as of Sep 30, 2023.
Long-term debt totaled $21.36 billion compared with $19.33 billion as of Sep 30, 2023.
Cash from operating activities amounted to $1.47 billion compared with $0.91 billion at the end of the third quarter of fiscal 2023.
Guidance
TransDigm raised its guidance for fiscal 2024. The company now expects sales to be in the range of $7.87-$7.93 billion, up from the earlier guidance of $7.68-$7.80 billion. The Zacks Consensus Estimate for the same is pegged at $7.83 billion, lower than the company’s revised guided range.
TDG currently expects fiscal 2024 adjusted earnings to be in the band of $32.62-$33.42 per share, up from the prior guidance of $31.75-$33.09. The Zacks Consensus Estimate for earnings is pegged at $33.04 per share, higher than the mid-point of the company’s revised guided range.
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 dropped 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.
Textron Inc. (TXT - Free Report) reported second-quarter 2024 adjusted earnings of $1.54 per share, which surpassed the Zacks Consensus Estimate of $1.49 by 3.4%. The bottom line also improved 5.5% from the year-ago quarter’s figure of $1.46.
TXT reported total revenues of $3.53 billion, which missed the Zacks Consensus Estimate of $3.55 billion by 0.6%. However, the reported figure increased 3% from the year-ago quarter’s level of $3.42 billion.
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TransDigm (TDG) Beats on Q3 Earnings, Ups '24 Sales View
TransDigm Group Incorporated (TDG - Free Report) reported third-quarter fiscal 2024 adjusted earnings of $9 per share, which beat the Zacks Consensus Estimate of $8.45 by 6.5%. The bottom line also improved 24.1% from the prior-year quarter’s reported figure of $7.25.
Barring one-time items, the company recorded GAAP earnings of $7.96 per share compared with $6.14 in the year-ago quarter.
The year-over-year improvement in bottom line can be attributed to improved sales, gross profit and operating income compared with the year-ago quarter’s level.
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 $2.05 billion, up 17.3% from $1.74 billion registered in the prior-year period. The reported figure also beat the Zacks Consensus Estimate of $1.99 billion by 2.6%.
Organic sales as a percentage of net sales grew 14.6%.
Operating Results
The gross profit for the quarter came in at $1.22 billion, up 18.6% from the year-ago quarter’s level of $1.03 billion.
Net income increased 31.3% year over year to $461 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 Jun 29, 2024, amounted to $3.36 billion, down from $3.47 billion recorded as of Sep 30, 2023.
Long-term debt totaled $21.36 billion compared with $19.33 billion as of Sep 30, 2023.
Cash from operating activities amounted to $1.47 billion compared with $0.91 billion at the end of the third quarter of fiscal 2023.
Guidance
TransDigm raised its guidance for fiscal 2024. The company now expects sales to be in the range of $7.87-$7.93 billion, up from the earlier guidance of $7.68-$7.80 billion. The Zacks Consensus Estimate for the same is pegged at $7.83 billion, lower than the company’s revised guided range.
TDG currently expects fiscal 2024 adjusted earnings to be in the band of $32.62-$33.42 per share, up from the prior guidance of $31.75-$33.09. The Zacks Consensus Estimate for earnings is pegged at $33.04 per share, higher than the mid-point of the company’s revised 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
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 dropped 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.
Textron Inc. (TXT - Free Report) reported second-quarter 2024 adjusted earnings of $1.54 per share, which surpassed the Zacks Consensus Estimate of $1.49 by 3.4%. The bottom line also improved 5.5% from the year-ago quarter’s figure of $1.46.
TXT reported total revenues of $3.53 billion, which missed the Zacks Consensus Estimate of $3.55 billion by 0.6%. However, the reported figure increased 3% from the year-ago quarter’s level of $3.42 billion.