U.S. Markets closed

TransDigm (TDG) Q4 Earnings Beat Estimates, Revenues Up Y/Y

Zacks Equity Research

TransDigm Group Incorporated TDG reported fourth-quarter fiscal 2019 adjusted earnings of $5.62 per share, which surpassed the Zacks Consensus Estimate of $4.85 by 15.9%. Moreover, the bottom line increased 26.6% from $4.44 per share a year ago.

Barring one-time items, the company reported GAAP earnings of $4.08 per share compared with $4.14 in the year-ago quarter.

Sales
 
Net sales amounted to $1,541.3 million, reflecting a surge of 46.9% from $1,049.4 million in the prior-year quarter. However, the reported figure missed the Zacks Consensus Estimate of $1,663 million by 7.3%.

Organic sales grew 8% year over year. Acquisition sales contributed $407.6 million, primarily coming from Esterline Technologies Corporation.

Financial Position

TransDigm ended the fourth quarter of fiscal 2019 with cash and cash equivalents of $1,467.5 million, down from $2,073 million as of Sep 30, 2018. At the end of the reported quarter, the company’s long-term debt summed $16.47 billion, up from $12.5 billion as of Sep 30, 2018.
 
Cash from operating activities amounted to $1,015.5 million as of Sep 30, 2019, compared with $1,022.2 million as of Sep 30, 2018.

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

Fiscal 2020 Outlook

TransDigm issued its fiscal 2020 financial guidance. Net sales are now anticipated to be $6,175-$6,325 million. The Zacks Consensus Estimate for the same is pegged at $6,300 million, which lies above the mid-point of the company’s guided range.

EBITDA is anticipated to be $2,775-$2,875 million. Adjusted earnings per share are now expected to be $19.8-$21.2.

Net income from continuing operations is anticipated to be $1,000-$1,080 million.

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

Northrop Grumman Corporation NOC reported third-quarter 2019 earnings of $5.49 per share, which surpassed the Zacks Consensus Estimate of $4.74 by 15.8%. However, the bottom line declined 22.8% from $7.11 per share in the year-ago quarter.

Lockheed Martin Corp LMT reported third-quarter 2019 earnings of $5.66 per share, which surpassed the Zacks Consensus Estimate of $5.03 by 12.5%. The bottom line also improved 10.1% from $5.14 per share in the year-ago quarter.

General Dynamics Corporation GD reported third-quarter 2019 earnings from continuing operations of $3.14 per share, which beat the Zacks Consensus Estimate of $3.06 by 2.6%. The bottom line also improved 10.2% from the prior-year quarter’s $2.85 per share.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
General Dynamics Corporation (GD) : Free Stock Analysis Report
 
Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
 
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
 
Transdigm Group Incorporated (TDG) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research