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

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TransDigm Group Incorporated (TDG - Free Report) 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

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

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