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TransDigm (TDG) Q3 Earnings Beat Estimates, Sales Rise Y/Y

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TransDigm Group Incorporated(TDG - Free Report) reported third-quarter fiscal 2022 adjusted earnings of $4.85 per share, which beat the Zacks Consensus Estimate of $4.46. The bottom line improved a solid 46% from the $3.33 reported a year ago.

Barring one-time items, the company reported GAAP earnings of $4.10 per share compared with the $5.43 generated in the year-ago quarter.

Sales

Net sales amounted to $1,398 million in the fiscal third quarter, increasing 14.8% from $1,218 million in the prior-year quarter. The reported figure, however, lagged the Zacks Consensus Estimate of $1,425.5 million by 1.9%.

Operating Results

The gross profit for the quarter rose 24.6% to $816 million from $655 million in the comparable quarter a year ago.

The income from continuing operations decreased 24.6% year over year to $239 million. The decrease in the income from continuing operations was primarily due to the higher effective tax rate and a pension settlement charge for the Esterline Retirement Plan.

Financial Position

TransDigm ended the third quarter of fiscal 2022 with cash and cash equivalents of $3,808 million, down from $4,787 million as of Sep 30, 2021.

At the end of the fiscal third quarter, TDG’s long-term debt was $19.38 billion, slightly up from $19.37 billion as of Sep 30, 2021.

Cash from operating activities amounted to $675 million for the first three quarters of fiscal 2022 compared with $624 million in the same period of 2021.

Guidance

Given the continued disruptions in TransDigm’s primary commercial end markets due to the impact of the pandemic, the company once again refrained from providing fiscal 2022 guidance.

Zacks Rank

TransDigm currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Recent Defense Releases

Lockheed Martin Corporation(LMT - Free Report) reported second-quarter 2022 earnings of $6.32 per share, which surpassed the Zacks Consensus Estimate of $6.29 by 0.5%. The bottom line, however, declined 1.6% year over year.

The company’s net sales amounted to $15.45 billion, which missed the Zacks Consensus Estimate of $16.16 billion by 4.4%. The top line also declined 9.3% from the $17.03 billion reported in the year-ago quarter.

Hexcel Corporation(HXL - Free Report) reported second-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 30 cents by 10%.

The company’s net sales totaled $393 million, which beat the Zacks Consensus Estimate of $383 million by 2.6%. Moreover, the top line witnessed an improvement of 22.7% from the year-ago quarter’s $320.3 million.

Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2022 adjusted earnings of $4.43 per share, which surpassed the Zacks Consensus Estimate of $4.38 by 1.1%. However, the bottom line declined 3.9% from the year-ago quarter’s $4.61 per share.

Total sales in the second quarter amounted to $1,355.8 million, which exceeded the Zacks Consensus Estimate of $1,352 million by 0.3%. The top line also improved 21% from the $1,121 million reported a year ago.

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