TransDigm Group, Inc.

TransDigm Group, Inc. (TDG - Analyst Report) is fresh off the heels of very solid first-quarter results in which income was up 40% from last year. Estimates have recently been lifted and the company's share price is pressuring a short-term level of resistance.

Company Description

TransDigm Inc. engages in the design, production and supply of engineered aircraft components for use on commercial and military aircraft both domestically and internationally. The company was founded in 1993 and has a market cap of $1.86 billion.

First-Quarter Results

TransDigm reported impressive first-quarter results on Feb 3 that were ahead of expectations. Sales were up 11% from last year to $181.3 million. Net income spiked, jumping to $39.6 million from $27 million, producing earnings of 78 cents per share, 20 cents ahead the consensus estimate.

The company noted that its gains were driven by higher sales and wider operating margins from cost cutting initiatives from the previous quarter.

This is the fourth time in the last four quarters that the company has surprised and beat estimates, having done so by an average of 10 cents, or 16%.

Guidance and Estimates

After the solid quarter, TransDigm went ahead and boosted its full-year income estimate to between $149 million and $158 million, up from the previous $140 million to $150 million.

The analyst community is a little more bullish, projecting current-year earnings of $3.02 per share, a 14% earnings growth projection.

The Chart

Shares of TDG have been rallying since bottoming out in late November at $23. Since then, this stocks has advanced above the $40 mark, where some short-term resistance has developed. Take a look at the chart below.