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TransDigm (TDG) Beats on Q1 Earnings, Ups '24 Sales View
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TransDigm Group Incorporated (TDG - Free Report) reported first-quarter fiscal 2024 adjusted earnings of $7.16 per share, which beat the Zacks Consensus Estimate of $6.37 by 12.4%. The bottom line also improved 56% from the prior-year quarter’s reported figure of $4.58.
Barring one-time items, the company recorded GAAP earnings of $4.87 per share compared with $3.33 in the year-ago quarter.
Sales
Net sales amounted to $1,789 million, up 28% from $1,397 million registered in the prior-year period. The reported figure also beat the Zacks Consensus Estimate of $1,670.9 million by 7.1%.
Transdigm Group Incorporated Price, Consensus and EPS Surprise
The gross profit for the quarter came in at $1,042 million, up 31.4% from the year-ago quarter’s level of $793 million.
Income from continuing operations increased 67% year over year to $382 million. The improvement was primarily driven by an increase in net sales and the application of its value-driven operating strategy.
Financial Position
TransDigm’s cash and cash equivalents as of Dec 30, 2023, amounted to $4,135 million, up from $3,472 million as of Sep 30, 2023.
At the end of the fiscal first quarter, TDG’s long-term debt totaled $21.35 billion compared with $19.33 billion as of Sep 30, 2023.
Cash from operating activities amounted to $636 million compared with $377 million at the end of the first quarter of fiscal 2023.
Guidance
TransDigm updated its guidance for fiscal 2024. The company now expects sales in the range of $7.58-$7.76 million, higher than the earlier projection of $7.48-$7.68 million. The Zacks Consensus Estimate for the same is pegged at $7.61 billion, lower than the mid-point of the company’s guided range.
TDG currently expects adjusted earnings in the band of $29.97-$31.73 per share compared with the prior projection of $31.00-$32.94 for fiscal 2024. The Zacks Consensus Estimate for earnings is pegged at $32.48 per share, higher than the company’s guided range.
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2023 adjusted earnings of $7.90 per share, which beat the Zacks Consensus Estimate of $7.26 by 8.8%. The bottom line also improved 1.4% from the year-ago quarter's recorded figure.
The company’s net sales were $18.87 billion, which surpassed the Zacks Consensus Estimate of $17.98 billion by 4.9%. The top line, however, decreased 0.6% from $18.99 billion reported in the year-ago quarter.
RTX Corporation’s (RTX - Free Report) fourth-quarter 2023 adjusted earnings per share (EPS) of $1.29 beat the Zacks Consensus Estimate of $1.25 by 3.2%. The bottom line also improved 1.6% from the year-ago quarter’s level of $1.27.
RTX’s fourth-quarter adjusted sales totaled $19,824 million. The company reported GAAP sales of $19,927 million compared with $18,093 million in the fourth quarter of 2022.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2023 adjusted earnings of $1.60 per share, which surpassed the Zacks Consensus Estimate of $1.53 by 4.6%. The bottom line also improved 30.1% from the year-ago quarter’s recorded figure.
The company reported total revenues of $3,892 million, which missed the Zacks Consensus Estimate of $3,917.6 million by 0.7%. However, the reported figure increased 7% from the year-ago quarter’s level of $3,636 million.
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TransDigm (TDG) Beats on Q1 Earnings, Ups '24 Sales View
TransDigm Group Incorporated (TDG - Free Report) reported first-quarter fiscal 2024 adjusted earnings of $7.16 per share, which beat the Zacks Consensus Estimate of $6.37 by 12.4%. The bottom line also improved 56% from the prior-year quarter’s reported figure of $4.58.
Barring one-time items, the company recorded GAAP earnings of $4.87 per share compared with $3.33 in the year-ago quarter.
Sales
Net sales amounted to $1,789 million, up 28% from $1,397 million registered in the prior-year period. The reported figure also beat the Zacks Consensus Estimate of $1,670.9 million by 7.1%.
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 came in at $1,042 million, up 31.4% from the year-ago quarter’s level of $793 million.
Income from continuing operations increased 67% year over year to $382 million. The improvement was primarily driven by an increase in net sales and the application of its value-driven operating strategy.
Financial Position
TransDigm’s cash and cash equivalents as of Dec 30, 2023, amounted to $4,135 million, up from $3,472 million as of Sep 30, 2023.
At the end of the fiscal first quarter, TDG’s long-term debt totaled $21.35 billion compared with $19.33 billion as of Sep 30, 2023.
Cash from operating activities amounted to $636 million compared with $377 million at the end of the first quarter of fiscal 2023.
Guidance
TransDigm updated its guidance for fiscal 2024. The company now expects sales in the range of $7.58-$7.76 million, higher than the earlier projection of $7.48-$7.68 million. The Zacks Consensus Estimate for the same is pegged at $7.61 billion, lower than the mid-point of the company’s guided range.
TDG currently expects adjusted earnings in the band of $29.97-$31.73 per share compared with the prior projection of $31.00-$32.94 for fiscal 2024. The Zacks Consensus Estimate for earnings is pegged at $32.48 per share, higher 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 Q4 Defense Releases
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2023 adjusted earnings of $7.90 per share, which beat the Zacks Consensus Estimate of $7.26 by 8.8%. The bottom line also improved 1.4% from the year-ago quarter's recorded figure.
The company’s net sales were $18.87 billion, which surpassed the Zacks Consensus Estimate of $17.98 billion by 4.9%. The top line, however, decreased 0.6% from $18.99 billion reported in the year-ago quarter.
RTX Corporation’s (RTX - Free Report) fourth-quarter 2023 adjusted earnings per share (EPS) of $1.29 beat the Zacks Consensus Estimate of $1.25 by 3.2%. The bottom line also improved 1.6% from the year-ago quarter’s level of $1.27.
RTX’s fourth-quarter adjusted sales totaled $19,824 million. The company reported GAAP sales of $19,927 million compared with $18,093 million in the fourth quarter of 2022.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2023 adjusted earnings of $1.60 per share, which surpassed the Zacks Consensus Estimate of $1.53 by 4.6%. The bottom line also improved 30.1% from the year-ago quarter’s recorded figure.
The company reported total revenues of $3,892 million, which missed the Zacks Consensus Estimate of $3,917.6 million by 0.7%. However, the reported figure increased 7% from the year-ago quarter’s level of $3,636 million.