TransDigm (TDG) Q1 Earnings Beat Estimates, Sales Up Y/Y

TransDigm Group Incorporated TDG reported first-quarter fiscal 2020 adjusted earnings of $4.93 per share, which surpassed the Zacks Consensus Estimate of $4.56 by 8.1%. Moreover, the bottom line improved 28.1% from the prior-year quarter figure of $3.85.

Barring one-time items, the company reported GAAP earnings of 83 cents per share compared with $3.05 in the year-ago quarter. The year-over-year bottom-line decline can be attributed to payments made in the quarter under review.

Sales

Net sales amounted to $1,465 million, reflecting year-over-year growth of 47.5% from the prior-year quarter. The top line also outpaced the Zacks Consensus Estimate of $1,458 million by 0.5%.  Meanwhile, organic sales improved 8.7%.

Acquisition sales from the Esterline takeover contributed $385 million to total sales.

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 first-quarter fiscal 2020 with cash and cash equivalents of $4,194 million, up from $1,467 million as of Sep 30, 2019.

At the end of the reported quarter, the company’s long-term debt summed $17.95 billion, up from $16.47 billion as of Sep 30, 2019.

Cash from operating activities amounted to $433 million as of Dec 28, 2019, compared with $330 million as of Dec 29, 2018.

Fiscal 2020 Outlook

TransDigm trimmed part of its fiscal 2020 financial guidance. Net sales are still anticipated in the range of $6,175-$6,325 million. The Zacks Consensus Estimate for the same is pegged at $6,280 million, which lies above the mid-point of the company’s guided range.

EBITDA is also reiterated in the range of $2,775-$2,875 million. Adjusted earnings per share are still expected in the range of $19.8-$21.2.The Zacks Consensus Estimate for the same is pegged at $20.83, which lies above the mid-point of the company’s guided range.

However, the company has slashed GAAP earnings from the prior range of $16.30-$17.79 to $14.20-$15.60.

Net income from continuing operations is still anticipated between $1,000 million and $1,080 million.

Zacks Rank

Transdigm currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Teledyne Technologies TDY reported fourth-quarter 2019 adjusted earnings of $2.90 per share, which surpassed the Zacks Consensus Estimate of $2.76 by 5.1%. The bottom-line figure came above the guided range of $2.71-$2.76 for the reported quarter.

Lockheed Martin LMT reported fourth-quarter 2019 earnings of $5.29 per share, which surpassed the Zacks Consensus Estimate of $4.99 by 6%. The bottom line also improved 20.5% from $4.39 in the year-ago quarter.

General Dynamics’ GD fourth-quarter earnings from continuing operations of $3.51 per share beat the Zacks Consensus Estimate of $3.46 by 1.45%.

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