TransDigm Group Incorporated (TDG Quick QuoteTDG - Free Report) reported fiscal third-quarter 2023 adjusted earnings of $7.25 per share, which beat the Zacks Consensus Estimate of $6.33 by 14.5%. The bottom line improved 49.5% from the prior-year quarter’s reported figure of $4.85.

Barring one-time items, the company recorded GAAP earnings of $6.14 per share compared with $4.10 in the year-ago quarter.

Sales

Net sales amounted to $1,744 million, up 24.7% from $1,398 million registered in the prior-year period. The reported figure also beat the Zacks Consensus Estimate of $1,677 million by 4%.

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 was $1,029 million, up 26.1% from the year-ago quarter’s level of $816 million.

Income from continuing operations increased 47.8% year over year to $352 million. The increase was primarily due to a rise in net sales and a favorable sales mix.

Financial Position

TransDigm’s cash and cash equivalents as of Jul 1, 2023, amounted to $3,071 million, up from $3,001 million as of Sep 30, 2022.

At the end of the fiscal third quarter, TDG’s long-term debt was $19.35 billion compared with $19.37 billion as of Sep 30, 2022.

Cash from operating activities totaled $913 million compared with $675 million at the end of fiscal third-quarter 2022.

Guidance

TransDigm has updated its financial guidance for fiscal 2023. The company now expects sales in the range of $6,525-$6,585 million compared with the previous guidance of $6,410-$6,500 million. The Zacks Consensus Estimate for the company’s full-year sales is pegged at $6.49 billion, lower than the company’s guided range.

The company currently expects adjusted earnings of $24.94-$25.36 per share for fiscal 2023, up from the prior estimated range of $23.31-$24.19 per share. The Zacks Consensus Estimate for full-year earnings is pegged at $24.03 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

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