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TransDigm (TDG) Beats on Q2 Earnings, Ups '23 EPS View
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TransDigm Group Incorporated (TDG - Free Report) reported fiscal second-quarter 2023 adjusted earnings of $5.98 per share, which beat the Zacks Consensus Estimate of $5.46 by 9.5%. The bottom line also improved a solid 54.9% from the prior-year quarter’s reported figure of $3.86.
Barring one-time items, the company reported GAAP earnings of $5.32 per share compared with $3.38 in the year-ago period.
Sales
Net sales amounted to $1,592 million, up 20% from $1,327 million in the prior-year quarter. The reported figure also beat the Zacks Consensus Estimate of $1,498 million by 6.3%.
Transdigm Group Incorporated Price, Consensus and EPS Surprise
Gross profit for the quarter was $929 million, up 26.2% from the year-ago period’s $736 million.
Income from continuing operations increased 42.7% year over year to $533 million. This improvement was primarily due to a rise in net sales and a favorable sales mix.
Financial Position
Cash and cash equivalents as of Apr 1, 2023 were $3,418 million compared with $3,001 million as of Sep 30, 2022.
At the end of the fiscal second quarter, TDG’s long-term debt was $19.35 billion compared with $19.37 billion as of Sep 30, 2022.
Cash from operating activities increased to $507 million from $366 million at the end of fiscal second-quarter 2022.
2023 Guidance
TransDigm raised its guidance for fiscal 2023. The company now expects sales in the range of $6,410-$6,500 million compared with the prior projection of $6,070-$6,240 million. The Zacks Consensus Estimate for the company’s full-year sales is pegged at $6.18 billion, lower than the company’s guided range.
TDG also currently expects adjusted earnings of $23.31-$24.19 per share for fiscal 2023, compared with the prior guidance of $21.47-$22.87 per share. The Zacks Consensus Estimate for full-year earnings is pegged at $22.36 per share, lower than the company’s guided range.
The Boeing Company (BA - Free Report) incurred an adjusted loss of $1.27 per share in the first quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 98 cents. However, the figure improved from the year-ago quarter’s reported loss of $2.75 per share.
Boeing’s revenues amounted to $17.92 billion, which beat the Zacks Consensus Estimate of $17.36 billion by 3.3%. The top line also improved 28% from the year-ago quarter’s reported figure of $13.99 billion.
Hexcel Corporation (HXL - Free Report) reported first-quarter 2023 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 28.2%. The bottom line also improved massively from the year-ago quarter’s level of 22 cents, highlighting solid growth of 127.3%.
The company registered GAAP earnings of 50 cents per share compared with the prior-year quarter’s 21 cents.
Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2023 adjusted earnings of $6.43 per share, which outpaced the Zacks Consensus Estimate of $6.07 by 5.9%. However, the bottom line was on par with the year-ago quarter's level.
Net sales amounted to $15.13 billion in the reported quarter, which outpaced the Zacks Consensus Estimate of $14.87 billion by 1.9%. The top line also rose 1.1% from $14.96 billion a year ago.
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TransDigm (TDG) Beats on Q2 Earnings, Ups '23 EPS View
TransDigm Group Incorporated (TDG - Free Report) reported fiscal second-quarter 2023 adjusted earnings of $5.98 per share, which beat the Zacks Consensus Estimate of $5.46 by 9.5%. The bottom line also improved a solid 54.9% from the prior-year quarter’s reported figure of $3.86.
Barring one-time items, the company reported GAAP earnings of $5.32 per share compared with $3.38 in the year-ago period.
Sales
Net sales amounted to $1,592 million, up 20% from $1,327 million in the prior-year quarter. The reported figure also beat the Zacks Consensus Estimate of $1,498 million by 6.3%.
Transdigm Group Incorporated Price, Consensus and EPS Surprise
Transdigm Group Incorporated price-consensus-eps-surprise-chart | Transdigm Group Incorporated Quote
Operating Results
Gross profit for the quarter was $929 million, up 26.2% from the year-ago period’s $736 million.
Income from continuing operations increased 42.7% year over year to $533 million. This improvement was primarily due to a rise in net sales and a favorable sales mix.
Financial Position
Cash and cash equivalents as of Apr 1, 2023 were $3,418 million compared with $3,001 million as of Sep 30, 2022.
At the end of the fiscal second quarter, TDG’s long-term debt was $19.35 billion compared with $19.37 billion as of Sep 30, 2022.
Cash from operating activities increased to $507 million from $366 million at the end of fiscal second-quarter 2022.
2023 Guidance
TransDigm raised its guidance for fiscal 2023. The company now expects sales in the range of $6,410-$6,500 million compared with the prior projection of $6,070-$6,240 million. The Zacks Consensus Estimate for the company’s full-year sales is pegged at $6.18 billion, lower than the company’s guided range.
TDG also currently expects adjusted earnings of $23.31-$24.19 per share for fiscal 2023, compared with the prior guidance of $21.47-$22.87 per share. The Zacks Consensus Estimate for full-year earnings is pegged at $22.36 per share, lower than the company’s guided range.
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
The Boeing Company (BA - Free Report) incurred an adjusted loss of $1.27 per share in the first quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 98 cents. However, the figure improved from the year-ago quarter’s reported loss of $2.75 per share.
Boeing’s revenues amounted to $17.92 billion, which beat the Zacks Consensus Estimate of $17.36 billion by 3.3%. The top line also improved 28% from the year-ago quarter’s reported figure of $13.99 billion.
Hexcel Corporation (HXL - Free Report) reported first-quarter 2023 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 28.2%. The bottom line also improved massively from the year-ago quarter’s level of 22 cents, highlighting solid growth of 127.3%.
The company registered GAAP earnings of 50 cents per share compared with the prior-year quarter’s 21 cents.
Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2023 adjusted earnings of $6.43 per share, which outpaced the Zacks Consensus Estimate of $6.07 by 5.9%. However, the bottom line was on par with the year-ago quarter's level.
Net sales amounted to $15.13 billion in the reported quarter, which outpaced the Zacks Consensus Estimate of $14.87 billion by 1.9%. The top line also rose 1.1% from $14.96 billion a year ago.