TransDigm (TDG) Q4 Earnings Beat Estimates, Sales Rise Y/Y
TransDigm Group Incorporated TDG reported fourth-quarter fiscal 2023 adjusted earnings of $8.03 per share, which beat the Zacks Consensus Estimate of $7.54 by 6.5%. The bottom line improved 46% from the prior-year quarter’s reported figure of $5.50.
Barring one-time items, the company recorded GAAP earnings of $7.23 per share compared with $3.98 in the year-ago quarter.
For fiscal 2023, the company reported adjusted earnings of $25.84 per share, up from $17.14 at the end of fiscal 2022. The full-year earnings also beat the Zacks Consensus Estimate of $25.33 by 2%.
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 $1,852 million, up 22.6% from $1,510 million registered in the prior-year period. The reported figure also beat the Zacks Consensus Estimate of $1,840.4 million by 0.6%.
For fiscal 2023, the company reported net sales of $6.59 billion, up from $5.43 billion at the end of fiscal 2022. The figure also beat the consensus estimate of $6.57 billion by 0.3%.
Operating Results
The gross profit for the quarter came in at $1,091 million, up 23.3% from the year-ago quarter’s level of $885 million.
Income from continuing operations increased 55.6% year over year to $414 million. The increase was primarily driven by an increase in net sales, favorable sales mix, and lower non-cash stock and deferred compensation expense.
Financial Position
TransDigm’s cash and cash equivalents as of Sep 30, 2023, amounted to $3,472 million, up from $3,001 million as of Sep 30, 2022.
At the end of the fiscal 2023, TDG’s long-term debt totaled $19.33 billion compared with $19.37 billion as of Sep 30, 2022.
Cash from operating activities amounted to $1,375 million compared with $948 million at the end of fiscal 2022.
Guidance
TransDigm issued its guidance for fiscal 2024. The company expects sales in the range of $7,480-$7,680 million and the Zacks Consensus Estimate for the same is pegged at $7.37 billion, lower than the company’s guided range.
TDG currently expects adjusted earnings in the band of $31.00-$32.94 per share for fiscal 2024. The Zacks Consensus Estimate for earnings is pegged at $31.14 per share, lower than the mid-point of 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
Lockheed Martin Corporation LMT reported third-quarter 2023 adjusted earnings of $6.77 per share, which beat the Zacks Consensus Estimate of $6.66 by 1.7%. The bottom line, however, deteriorated 1.5% from the year-ago quarter's recorded figure.
Net sales were $16.88 billion, which beat the Zacks Consensus Estimate of $16.66 billion by 1.3%. The top line also rose 1.8% from $16.58 billion reported in the year-ago quarter.
RTX Corporation’s RTX third-quarter 2023 adjusted earnings per share of $1.25 beat the Zacks Consensus Estimate of $1.19 by 5%. The bottom line also improved 3.3% from the year-ago quarter’s level of $1.21.
RTX’s third-quarter adjusted sales of $18,952 million beat the Zacks Consensus Estimate of $18,709 million by 1.3%.
L3Harris Technologies, Inc. LHX reported third-quarter 2023 adjusted earnings (from continuing operations) of $3.19 per share, which beat the Zacks Consensus Estimate of $3.06 by 4.2%. However, the bottom line decreased 2.1% from the year-ago quarter’s reported figure.
L3Harris’ revenues totaled $4,915 million, which beat the Zacks Consensus Estimate of $4,819 million by 2%. The figure also rose 15.8% from the year-ago quarter’s recorded figure of $4,246 million.
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