We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Air Travel Demand Aid TransDigm's (TDG) Q3 Earnings?
Read MoreHide Full Article
TransDigm Group Incorporated (TDG - Free Report) is slated to report fiscal third-quarter 2023 results on Aug 8 before market open.
TransDigm delivered a four-quarter average earnings surprise of 8.97%. The recovery in the commercial aerospace market and positive trends in the demand for travel are likely to add impetus to TDG’s third-quarter results.
Power & Control Segment to Remain Strong
Strong commercial original equipment manufacturer and commercial aftermarket business volumes, driven by growth in global revenue passenger miles and a rebound in the Chinese air traffic, are likely to have contributed to the Power & Control segment’s performance in the third quarter. Robust bookings in prior quarters are likely to add impetus to the segment’s performance in the upcoming results.
The Zacks Consensus Estimate for the Power & Control segment’s fiscal third-quarter revenues is pegged at $851.5 million. This indicates an improvement of 15.5% from the year-ago quarter’s level.
Airframe Segment to Boost Revenues
The Airframe segment is likely to have remained robust in the third quarter, buoyed by the continued recovery in air travel demand. This fuels the demand for narrow-body and wide-body aircraft.
The Zacks Consensus Estimate for the segment’s fiscal third-quarter revenues is pegged at $767.2 million. This implies a 23.87% increase from the year-ago quarter’s recorded figure.
Q3 Estimates
In the third quarter, the anticipated robust performance in both its segments is likely to have a positive impact on the overall revenue performance of the company. The Zacks Consensus Estimate for sales is pegged at $1.68 billion, indicating an improvement of 20% from the prior-year recorded number.
A strong top line must have aided its overall margin performance, thus adding impetus to the bottom line of TDG in the third quarter. The Zacks Consensus Estimate for fiscal third-quarter earningsis pegged at $6.33 per share, indicating an increase of 30.5% from the year-ago reported figure.
Transdigm Group Incorporated Price and EPS Surprise
Our proven model predicts an earnings beat for TransDigm this time. 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, which is the case here.
Earnings ESP: The company’s Earnings ESP is +1.53%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here is another defense player you may want to consider as it also has the right combination of elements to post an earnings beat this season:
Embraer S.A. (ERJ - Free Report) has an Earnings ESP of +25.00% and a Zacks Rank #3. The long-term earnings growth rate of ERJ is 17%.
The Zacks Consensus Estimate for Embraer’s second-quarter earnings, pegged at 12 cents per share, indicates a decline of 42.9% from the prior-year reported figure. The Zacks Consensus Estimate for ERJ’s sales suggests a growth rate of 14.3% from the prior-year reported figure.
Recent Defense Releases
General Dynamics Corporation (GD - Free Report) reported second-quarter 2023 earnings per share (EPS) of $2.70, which beat the Zacks Consensus Estimate of $2.59 by 4.2%. However, the figure decreased 1.8% from $2.75 per share recorded in the year-ago quarter.
General Dynamics’ revenues of $10,152 million beat the Zacks Consensus Estimate of $9,413.3 million by 7.8%. The top line also improved 10.5% from that reported in the prior-year period.
AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2023 adjusted earnings of 83 cents per share, which surpassed the Zacks Consensus Estimate of 77 cents by 7.8%. Earnings surged 15% from the year-ago quarter.
In the quarter under review, AAR generated net sales worth $553.3 million. The reported figure surpassed the Zacks Consensus Estimate by 4.5% and increased 16.5% from the $474.9 million recorded in the year-ago quarter.
Image: Bigstock
Will Air Travel Demand Aid TransDigm's (TDG) Q3 Earnings?
TransDigm Group Incorporated (TDG - Free Report) is slated to report fiscal third-quarter 2023 results on Aug 8 before market open.
TransDigm delivered a four-quarter average earnings surprise of 8.97%. The recovery in the commercial aerospace market and positive trends in the demand for travel are likely to add impetus to TDG’s third-quarter results.
Power & Control Segment to Remain Strong
Strong commercial original equipment manufacturer and commercial aftermarket business volumes, driven by growth in global revenue passenger miles and a rebound in the Chinese air traffic, are likely to have contributed to the Power & Control segment’s performance in the third quarter. Robust bookings in prior quarters are likely to add impetus to the segment’s performance in the upcoming results.
The Zacks Consensus Estimate for the Power & Control segment’s fiscal third-quarter revenues is pegged at $851.5 million. This indicates an improvement of 15.5% from the year-ago quarter’s level.
Airframe Segment to Boost Revenues
The Airframe segment is likely to have remained robust in the third quarter, buoyed by the continued recovery in air travel demand. This fuels the demand for narrow-body and wide-body aircraft.
The Zacks Consensus Estimate for the segment’s fiscal third-quarter revenues is pegged at $767.2 million. This implies a 23.87% increase from the year-ago quarter’s recorded figure.
Q3 Estimates
In the third quarter, the anticipated robust performance in both its segments is likely to have a positive impact on the overall revenue performance of the company. The Zacks Consensus Estimate for sales is pegged at $1.68 billion, indicating an improvement of 20% from the prior-year recorded number.
A strong top line must have aided its overall margin performance, thus adding impetus to the bottom line of TDG in the third quarter. The Zacks Consensus Estimate for fiscal third-quarter earningsis pegged at $6.33 per share, indicating an increase of 30.5% from the year-ago reported figure.
Transdigm Group Incorporated Price and EPS Surprise
Transdigm Group Incorporated price-eps-surprise | Transdigm Group Incorporated Quote
What the Zacks Model Unveils
Our proven model predicts an earnings beat for TransDigm this time. 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, which is the case here.
Earnings ESP: The company’s Earnings ESP is +1.53%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: TransDigm carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Another Stock to Consider
Here is another defense player you may want to consider as it also has the right combination of elements to post an earnings beat this season:
Embraer S.A. (ERJ - Free Report) has an Earnings ESP of +25.00% and a Zacks Rank #3. The long-term earnings growth rate of ERJ is 17%.
The Zacks Consensus Estimate for Embraer’s second-quarter earnings, pegged at 12 cents per share, indicates a decline of 42.9% from the prior-year reported figure. The Zacks Consensus Estimate for ERJ’s sales suggests a growth rate of 14.3% from the prior-year reported figure.
Recent Defense Releases
General Dynamics Corporation (GD - Free Report) reported second-quarter 2023 earnings per share (EPS) of $2.70, which beat the Zacks Consensus Estimate of $2.59 by 4.2%. However, the figure decreased 1.8% from $2.75 per share recorded in the year-ago quarter.
General Dynamics’ revenues of $10,152 million beat the Zacks Consensus Estimate of $9,413.3 million by 7.8%. The top line also improved 10.5% from that reported in the prior-year period.
AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2023 adjusted earnings of 83 cents per share, which surpassed the Zacks Consensus Estimate of 77 cents by 7.8%. Earnings surged 15% from the year-ago quarter.
In the quarter under review, AAR generated net sales worth $553.3 million. The reported figure surpassed the Zacks Consensus Estimate by 4.5% and increased 16.5% from the $474.9 million recorded in the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.