TransDigm Group Incorporated (TDG - Free Report) reported second-quarter fiscal 2022 adjusted earnings of $3.86 per share, which beat the Zacks Consensus Estimate of $3.71 by 4%. The bottom line improved a solid 50% from $2.58 reported a year ago.
Barring one-time items, the company reported GAAP earnings of $3.38 per share compared with $1.79 generated in the year-ago quarter.
This year-over-year improvement can be attributed to an increase in net sales, favorable sales mix, along with lower one-time refinancing costs as well as lower COVID-19 restructuring costs.
Sales
Net sales amounted to $1,327 million in the fiscal second quarter, increasing 11.1% from $1,194 million in the prior-year quarter. The reported figure also exceeded the Zacks Consensus Estimate of $1.31 million by 1.5%.
Operating Results
Gross profit for the quarter rose 24.3% to $736 million from $592 million in the comparable quarter a year ago.
Consequently, income from operations surged 32% year over year to $520 million.
Financial Position
TransDigm ended second-quarter fiscal 2022 with cash and cash equivalents of $4,216 million, down from $4,787 million as of Sep 30, 2021.
At the end of the fiscal second quarter, the company’s long-term debt was $19.39 billion, slightly up from $19.37 billion as of Sep 30, 2021.
Cash from operating activities amounted to $366 million as of Apr 2, 2022, compared with $372 million as of Apr 3, 2021.
Guidance
Given the continued disruptions in TransDigm’s primary commercial end markets, thanks to the impact of the COVID-19 pandemic, the company once again refrained from providing fiscal 2022 guidance.
Zacks Rank
TransDigm currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Raytheon Technologies’ (RTX - Free Report) first-quarter 2022 adjusted earnings per share (EPS) of $1.15 beat the Zacks Consensus Estimate of $1.01 by 13.9%. Moreover, the bottom-line figure improved 27.8% from the year-ago quarter’s adjusted earnings of 90 cents.
Raytheon’s first-quarter sales of $15,716 million missed the Zacks Consensus Estimate of $15,799 million by 0.5%. The sales figure, however, rose 3% from $15,251 million recorded in the year-ago quarter.
Lockheed Martin (LMT - Free Report) reported first-quarter 2022 earnings of $6.44 per share, which surpassed the Zacks Consensus Estimate of $6.22 by 3.5%. The bottom line, however, declined 1.8% year over year.
Lockheed Martin’s net sales amounted to $14.96 billion, which missed the Zacks Consensus Estimate of $15.53 billion by 3.7%. The top line also declined 8% from $16.26 billion reported in the year-ago quarter
Teledyne Technologies Inc. (TDY - Free Report) reported first-quarter 2022 adjusted earnings of $4.27 per share, which surpassed the Zacks Consensus Estimate of $4.09 by 4.4%. The bottom line also improved 33.9% from the year-ago quarter’s $3.19 per share.
Teledyne’s total sales in the first quarter amounted to $1,321 million, which exceeded the Zacks Consensus Estimate of $1,315 million by 0.5%. The top line also improved 64% from $805.7 million reported a year ago.
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TransDigm Group Incorporated (TDG - Free Report) reported second-quarter fiscal 2022 adjusted earnings of $3.86 per share, which beat the Zacks Consensus Estimate of $3.71 by 4%. The bottom line improved a solid 50% from $2.58 reported a year ago.
Barring one-time items, the company reported GAAP earnings of $3.38 per share compared with $1.79 generated in the year-ago quarter.
This year-over-year improvement can be attributed to an increase in net sales, favorable sales mix, along with lower one-time refinancing costs as well as lower COVID-19 restructuring costs.
Sales
Net sales amounted to $1,327 million in the fiscal second quarter, increasing 11.1% from $1,194 million in the prior-year quarter. The reported figure also exceeded the Zacks Consensus Estimate of $1.31 million by 1.5%.
Operating Results
Gross profit for the quarter rose 24.3% to $736 million from $592 million in the comparable quarter a year ago.
Consequently, income from operations surged 32% year over year to $520 million.
Financial Position
TransDigm ended second-quarter fiscal 2022 with cash and cash equivalents of $4,216 million, down from $4,787 million as of Sep 30, 2021.
At the end of the fiscal second quarter, the company’s long-term debt was $19.39 billion, slightly up from $19.37 billion as of Sep 30, 2021.
Cash from operating activities amounted to $366 million as of Apr 2, 2022, compared with $372 million as of Apr 3, 2021.
Guidance
Given the continued disruptions in TransDigm’s primary commercial end markets, thanks to the impact of the COVID-19 pandemic, the company once again refrained from providing fiscal 2022 guidance.
Zacks Rank
TransDigm currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Raytheon Technologies’ (RTX - Free Report) first-quarter 2022 adjusted earnings per share (EPS) of $1.15 beat the Zacks Consensus Estimate of $1.01 by 13.9%. Moreover, the bottom-line figure improved 27.8% from the year-ago quarter’s adjusted earnings of 90 cents.
Raytheon’s first-quarter sales of $15,716 million missed the Zacks Consensus Estimate of $15,799 million by 0.5%. The sales figure, however, rose 3% from $15,251 million recorded in the year-ago quarter.
Lockheed Martin (LMT - Free Report) reported first-quarter 2022 earnings of $6.44 per share, which surpassed the Zacks Consensus Estimate of $6.22 by 3.5%. The bottom line, however, declined 1.8% year over year.
Lockheed Martin’s net sales amounted to $14.96 billion, which missed the Zacks Consensus Estimate of $15.53 billion by 3.7%. The top line also declined 8% from $16.26 billion reported in the year-ago quarter
Teledyne Technologies Inc. (TDY - Free Report) reported first-quarter 2022 adjusted earnings of $4.27 per share, which surpassed the Zacks Consensus Estimate of $4.09 by 4.4%. The bottom line also improved 33.9% from the year-ago quarter’s $3.19 per share.
Teledyne’s total sales in the first quarter amounted to $1,321 million, which exceeded the Zacks Consensus Estimate of $1,315 million by 0.5%. The top line also improved 64% from $805.7 million reported a year ago.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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