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TransDigm Group Incorporated (TDG - Free Report) reported fourth-quarter fiscal 2022 adjusted earnings of $5.50 per share, which beat the Zacks Consensus Estimate of $4.46. The bottom line improved by a solid 29.4% from the $4.25 per share reported a year ago.
Barring one-time items, the company reported GAAP earnings of $3.98 per share compared with the $3.58 generated in the year-ago quarter.
TransDigm reported an adjusted EPS of $17.14 for full-year 2022, which increased 41.3% from the $12.13 reported in 2021. The adjusted EPS also beat the Zacks Consensus Estimate of $16.72 by 2.5%.
Sales
Net sales amounted to $1,510 million in the fiscal fourth quarter, increasing 18% from $1,279 million in the prior-year quarter. The reported figure also beat the Zacks Consensus Estimate of $1,508.6 million by 0.1%.
In 2022, TDG generated sales worth $5,429 million, up 13% from the year-ago figure. The reported figure came in line with the Zacks Consensus Estimate.
Transdigm Group Incorporated Price, Consensus and EPS Surprise
The gross profit for the quarter rose 22.1% to $885 million from $725 million in the comparable quarter a year ago.
The income from continuing operations increased 27% year over year to $266 million. The increase in the income from continuing operations was primarily due to a rise in net sales and a favorable sales mix.
Financial Position
TransDigm’s cash and cash equivalents as of Sep 30, 2022 were $3,001 million, down from $4,787 million as of Sep 30, 2021.
At the end of fiscal 2022, TDG’s long-term debt was $19.37 billion, in line with the long-term debt as of Sep 30, 2021.
Cash from operating activities amounted to $948 million for fiscal 2022 compared with $913 million at the end of 2021.
Guidance
TransDigm initiated its financial guidance for fiscal 2023. The company expects sales in the band of $5,990-$6,190 million. The Zacks Consensus Estimate for the company’s full-year sales is pegged at $6.05 million, slightly lower than the midpoint of the company’s guided range.
The company expects fiscal 2023 adjusted earnings in the range of $20.68-$22.08 per share. The Zacks Consensus Estimate for its full-year earnings is pegged at $21.37 per share, in line with the midpoint of the company’s guided range.
Zacks Rank
TransDigm currently carries a Zacks Rank #4 (Sell).
Spirit AeroSystems Holdings, Inc. (SPR - Free Report) reported a third-quarter 2022 adjusted loss of 25 cents per share, narrower than the Zacks Consensus Estimate for a loss of 39 cents. The bottom line improved significantly from the year-ago quarter’s loss of $1.13 per share.
Total revenues of $1,277 million lagged the Zacks Consensus Estimate of $1,295 million by 1.4%. However, the top line rose 30% on a year-over-year basis, driven by the higher production deliveries of the Boeing 737 and increased aftermarket revenues.
Hexcel Corporation (HXL - Free Report) reported third-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 32 cents by 3.1%. The bottom line improved massively from the year-ago earnings of 8 cents per share, reflecting growth of a solid 153.8%.
In the third quarter, net sales totaled $364.7 million, which lagged the Zacks Consensus Estimate of $391 million by 6.8%. However, the top line witnessed an improvement of 9.3% from the year-ago quarter’s $333.8 million.
Leidos Holdings, Inc.’s (LDOS - Free Report) third-quarter 2022 adjusted earnings of $1.59 per share beat the Zacks Consensus Estimate of $1.56 by 1.9%. However, the bottom line declined 11.7% from the $1.80 per share registered a year ago.
Leidos Holdings generated total revenues of $3,600 million in the quarter under consideration, exceeding the Zacks Consensus Estimate of $3,543.9 million by 1.6%. The top line also improved 4% year over year.
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TransDigm (TDG) Q4 Earnings Beat Estimates, Sales Rise Y/Y
TransDigm Group Incorporated (TDG - Free Report) reported fourth-quarter fiscal 2022 adjusted earnings of $5.50 per share, which beat the Zacks Consensus Estimate of $4.46. The bottom line improved by a solid 29.4% from the $4.25 per share reported a year ago.
Barring one-time items, the company reported GAAP earnings of $3.98 per share compared with the $3.58 generated in the year-ago quarter.
TransDigm reported an adjusted EPS of $17.14 for full-year 2022, which increased 41.3% from the $12.13 reported in 2021. The adjusted EPS also beat the Zacks Consensus Estimate of $16.72 by 2.5%.
Sales
Net sales amounted to $1,510 million in the fiscal fourth quarter, increasing 18% from $1,279 million in the prior-year quarter. The reported figure also beat the Zacks Consensus Estimate of $1,508.6 million by 0.1%.
In 2022, TDG generated sales worth $5,429 million, up 13% from the year-ago figure. The reported figure came in line with the Zacks Consensus Estimate.
Transdigm Group Incorporated Price, Consensus and EPS Surprise
Transdigm Group Incorporated price-consensus-eps-surprise-chart | Transdigm Group Incorporated Quote
Operating Results
The gross profit for the quarter rose 22.1% to $885 million from $725 million in the comparable quarter a year ago.
The income from continuing operations increased 27% year over year to $266 million. The increase in the income from continuing operations was primarily due to a rise in net sales and a favorable sales mix.
Financial Position
TransDigm’s cash and cash equivalents as of Sep 30, 2022 were $3,001 million, down from $4,787 million as of Sep 30, 2021.
At the end of fiscal 2022, TDG’s long-term debt was $19.37 billion, in line with the long-term debt as of Sep 30, 2021.
Cash from operating activities amounted to $948 million for fiscal 2022 compared with $913 million at the end of 2021.
Guidance
TransDigm initiated its financial guidance for fiscal 2023. The company expects sales in the band of $5,990-$6,190 million. The Zacks Consensus Estimate for the company’s full-year sales is pegged at $6.05 million, slightly lower than the midpoint of the company’s guided range.
The company expects fiscal 2023 adjusted earnings in the range of $20.68-$22.08 per share. The Zacks Consensus Estimate for its full-year earnings is pegged at $21.37 per share, in line with the midpoint of the company’s guided range.
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
Spirit AeroSystems Holdings, Inc. (SPR - Free Report) reported a third-quarter 2022 adjusted loss of 25 cents per share, narrower than the Zacks Consensus Estimate for a loss of 39 cents. The bottom line improved significantly from the year-ago quarter’s loss of $1.13 per share.
Total revenues of $1,277 million lagged the Zacks Consensus Estimate of $1,295 million by 1.4%. However, the top line rose 30% on a year-over-year basis, driven by the higher production deliveries of the Boeing 737 and increased aftermarket revenues.
Hexcel Corporation (HXL - Free Report) reported third-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 32 cents by 3.1%. The bottom line improved massively from the year-ago earnings of 8 cents per share, reflecting growth of a solid 153.8%.
In the third quarter, net sales totaled $364.7 million, which lagged the Zacks Consensus Estimate of $391 million by 6.8%. However, the top line witnessed an improvement of 9.3% from the year-ago quarter’s $333.8 million.
Leidos Holdings, Inc.’s (LDOS - Free Report) third-quarter 2022 adjusted earnings of $1.59 per share beat the Zacks Consensus Estimate of $1.56 by 1.9%. However, the bottom line declined 11.7% from the $1.80 per share registered a year ago.
Leidos Holdings generated total revenues of $3,600 million in the quarter under consideration, exceeding the Zacks Consensus Estimate of $3,543.9 million by 1.6%. The top line also improved 4% year over year.