U.S. Markets closed

TransDigm's (TDG) Q2 Earnings Beat Estimates, Sales Down Y/Y

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

TransDigm Group Incorporated TDG reported second-quarter fiscal 2021 adjusted earnings of $2.58 per share, which surpassed the Zacks Consensus Estimate of $2.52 by 2.4%. However, the bottom line declined 49.4% from $5.10 reported a year ago.

Barring one-time items, the company reported GAAP earnings of $1.79 per share compared with $5.56 in the year-ago quarter.

Sales

Net sales amounted to $1,194 million, declining 17.3% from $1,443 million in the prior-year quarter. The reported figure, however, outpaced the Zacks Consensus Estimate of $1,180 million by 1.2%.

Operating Results

Net income from continuing operations for the quarter plunged 67.5% to $105 million compared with $323 million in the comparable quarter a year ago. The decrease in income from continuing operations primarily reflects the decline in net sales.

Transdigm Group Incorporated Price, Consensus and EPS Surprise

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

Financial Position

TransDigm ended the second quarter of fiscal 2021 with cash and cash equivalents of $4,072 million, down from $4,717 million as of Sep 30, 2020.

At the end of the reported quarter, the company’s long-term debt summed $19.40 billion, up from $19.38 billion as of Sep 30, 2020.

Cash from operating activities amounted to $372 million as of Apr 3, 2021, compared with $594 million as of Mar 28, 2020.

Fiscal 2021 Outlook

Given the considerable uncertainty concerning the extent and duration of business disruptions stemming from the COVID-19 pandemic and how it will impact operations further, TransDigm kept its previously provided fiscal 2021 guidance suspended.

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

Lockheed Martin Corp. LMT reported first-quarter 2021 earnings of $6.56 per share, which surpassed the Zacks Consensus Estimate of $6.32 by 3.8%.

Hexcel Corporation HXL reported first-quarter 2021 loss of 10 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 16 cents.

Raytheon Technologies Corporation’s RTX first-quarter 2021 adjusted earnings per share of 90 cents outpaced the Zacks Consensus Estimate of 88 cents by 2.3%.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 3 crypto-related 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

Transdigm Group Incorporated (TDG) : Free Stock Analysis Report

Lockheed Martin Corporation (LMT) : Free Stock Analysis Report

Hexcel Corporation (HXL) : Free Stock Analysis Report

Raytheon Technologies Corporation (RTX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research