TransDigm (TDG) Beats on Q3 Earnings, Ups '23 EPS View
TransDigm Group Incorporated TDG reported fiscal third-quarter 2023 adjusted earnings of $7.25 per share, which beat the Zacks Consensus Estimate of $6.33 by 14.5%. The bottom line improved 49.5% from the prior-year quarter’s reported figure of $4.85.
Barring one-time items, the company recorded GAAP earnings of $6.14 per share compared with $4.10 in the year-ago quarter.
Sales
Net sales amounted to $1,744 million, up 24.7% from $1,398 million registered in the prior-year period. The reported figure also beat the Zacks Consensus Estimate of $1,677 million by 4%.
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 $1,029 million, up 26.1% from the year-ago quarter’s level of $816 million.
Income from continuing operations increased 47.8% year over year to $352 million. The increase was primarily due to a rise in net sales and a favorable sales mix.
Financial Position
TransDigm’s cash and cash equivalents as of Jul 1, 2023, amounted to $3,071 million, up from $3,001 million as of Sep 30, 2022.
At the end of the fiscal third quarter, TDG’s long-term debt was $19.35 billion compared with $19.37 billion as of Sep 30, 2022.
Cash from operating activities totaled $913 million compared with $675 million at the end of fiscal third-quarter 2022.
Guidance
TransDigm has updated its financial guidance for fiscal 2023. The company now expects sales in the range of $6,525-$6,585 million compared with the previous guidance of $6,410-$6,500 million. The Zacks Consensus Estimate for the company’s full-year sales is pegged at $6.49 billion, lower than the company’s guided range.
The company currently expects adjusted earnings of $24.94-$25.36 per share for fiscal 2023, up from the prior estimated range of $23.31-$24.19 per share. The Zacks Consensus Estimate for full-year earnings is pegged at $24.03 per share, lower than 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
Leidos Holdings, Inc.’s LDOS second-quarter 2023 adjusted earnings of $1.80 per share beat the Zacks Consensus Estimate of $1.55 by 16.1%. The bottom line also increased 13.2% from $1.59 recorded a year ago.
Leidos Holdings generated total revenues of $3,810 million, which beat the Zacks Consensus Estimate of $3,725.7 million by 2.3%. The top line also improved 6% year over year, driven by increased demand across all customer segments, especially for digital modernization, hypersonics and medical examination solutions.
Lockheed Martin LMT reported second-quarter 2023 adjusted earnings of $6.73 per share, which beat the Zacks Consensus Estimate of $6.43 by 4.7%. The bottom line also improved 6.5% from the year-ago quarter's figure.
Net sales amounted to $16.69 billion, which outpaced the Zacks Consensus Estimate of $15.86 billion by 5.3%. The top line rose 8.1% from $15.45 billion recorded in the year-ago quarter.
The Boeing Company BA incurred an adjusted loss of 82 cents per share in second-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of 99 cents. The bottom line, however, deteriorated from the year-ago quarter’s reported loss of 37 cents.
Boeing’s revenues amounted to $19.75 billion, which beat the Zacks Consensus Estimate of $18.46 billion by 7%. The top line also improved 18% from the year-ago quarter’s reported figure of $16.68 billion.
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