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TransDigm Group (TDG) to Post Q2 Earnings: What's in Store?
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TransDigm Group Incorporated (TDG - Free Report) is slated to report second-quarter fiscal 2022 results on May 10, before market open.
In the last reported quarter, the company delivered a negative earnings surprise of 3.23%. Moreover, TransDigm surpassed the Zacks Consensus Estimate in three out of the trailing four quarters and missed the same once, delivering an earnings surprise of 6.19%, on average.
Let’s see how things have shaped up prior to this announcement.
Transdigm Group Incorporated Price and EPS Surprise
A steady recovery has been observed in the commercial aerospace industry over the past few months, thanks to expanding vaccination rates along with increased air traffic, especially in certain domestic markets. This in turn must have boosted the company’s commercial aftermarket revenues in the fiscal second quarter.
However, delivery slowdowns due to the COVID-19 pandemic adversely impacted international travel. Boeing's quality control issues with the 787 aircraft might have had some adverse impact on TransDigm Group’s overall revenues.
Also supply chain-induced delays in fulfilling orders at certain operating units may have hurt its defense revenues.
The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $1.31 billion, indicating an improvement of 9.6% from second-quarter fiscal 2022 reported revenues.
Such encouraging revenue projections make us optimistic about TransDigm’s fiscal second-quarter earnings. Moreover, the company’s cost-management initiatives are expected to have boosted its quarterly bottom line.
Also, with the integration of the Cobham Aero Connectivity business, following its acquisition by TransDigm, positive synergies from this transaction may have contributed to the company’s earnings in the fiscal second quarter.
The Zacks Consensus Estimate for earnings stands at $3.71 per share, implying a solid increase of 43.8% from the year-ago quarter’s reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for TransDigm Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However this is not the case.
Earnings ESP: The company’s Earnings ESP is -4.98%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: TransDigm Group carries a Zacks Rank #4 (Sell), currently.
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 (TDG) to Post Q2 Earnings: What's in Store?
TransDigm Group Incorporated (TDG - Free Report) is slated to report second-quarter fiscal 2022 results on May 10, before market open.
In the last reported quarter, the company delivered a negative earnings surprise of 3.23%. Moreover, TransDigm surpassed the Zacks Consensus Estimate in three out of the trailing four quarters and missed the same once, delivering an earnings surprise of 6.19%, on average.
Let’s see how things have shaped up prior to this announcement.
Transdigm Group Incorporated Price and EPS Surprise
Transdigm Group Incorporated price-eps-surprise | Transdigm Group Incorporated Quote
Factors to Consider
A steady recovery has been observed in the commercial aerospace industry over the past few months, thanks to expanding vaccination rates along with increased air traffic, especially in certain domestic markets. This in turn must have boosted the company’s commercial aftermarket revenues in the fiscal second quarter.
However, delivery slowdowns due to the COVID-19 pandemic adversely impacted international travel. Boeing's quality control issues with the 787 aircraft might have had some adverse impact on TransDigm Group’s overall revenues.
Also supply chain-induced delays in fulfilling orders at certain operating units may have hurt its defense revenues.
The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $1.31 billion, indicating an improvement of 9.6% from second-quarter fiscal 2022 reported revenues.
Such encouraging revenue projections make us optimistic about TransDigm’s fiscal second-quarter earnings. Moreover, the company’s cost-management initiatives are expected to have boosted its quarterly bottom line.
Also, with the integration of the Cobham Aero Connectivity business, following its acquisition by TransDigm, positive synergies from this transaction may have contributed to the company’s earnings in the fiscal second quarter.
The Zacks Consensus Estimate for earnings stands at $3.71 per share, implying a solid increase of 43.8% from the year-ago quarter’s reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for TransDigm Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However this is not the case.
Earnings ESP: The company’s Earnings ESP is -4.98%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: TransDigm Group carries a Zacks Rank #4 (Sell), currently.
You can see the complete list of today’s Zacks #1 Rank 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.