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TransDigm (TDG) Q3 Earnings Beat, While Revenues Lag
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TransDigm Group Incorporated (TDG - Free Report) is a leading global designer, producer and supplier of highly engineered aircraft components that are used in in-service commercial and military aircraft. The company has an extensive portfolio of proprietary products, which boosts its competitive position. In addition, the company has a robust aftermarket business, which lends stability to its operations even in economic downturns, and produces higher margins as well.
The company has grown organically and has also made strategic acquisitions to expand its geographic presence and scope of services. Earlier this year, TransDigm completed the acquisition of aircraft and weapons lifting and pulling systems maker Breeze-Eastern Corporation, which will strengthen TransDigm’s foothold in the niche markets of highly engineered proprietary aerospace components.
However, the company is vulnerable to weakness in defense and commercial OEM markets. Heavy dependence of the military and defense market on government budgets also makes the company exposed to planned budgetary spending cuts and other presidential policies. Also, the company faces significant integration risks and expenses, related to its acquisitions.
The company has had a choppy earnings history. It beat the Zacks Consensus Estimate in two of the trailing four quarters, while missing in two, with an average positive surprise of 10.9%.
Currently, TDG has a Zacks Rank #3 (Hold) but that could definitely change following its third-quarter fiscal 2016 earnings report, which has just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: TDG’s adjusted earnings came in at $2.94 per share, beating the Zacks Consensus Estimate of $2.80 comfortably.
Revenue: Revenues of the company came in at $797.7 million, missing the Zacks Consensus Estimate of $822 million.
Key Stats: TDG saw progress in its commercial aftermarket business, and its commercial transport aerospace businesses continue to show strength. The company raised its top line and earnings guidance for fiscal 2016, incorporating the effect of the recently acquired ILC Holdings Inc. (the parent company of Data Device Corporation).
Stock Price: TDG shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this TDG earnings report later!
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TransDigm (TDG) Q3 Earnings Beat, While Revenues Lag
TransDigm Group Incorporated (TDG - Free Report) is a leading global designer, producer and supplier of highly engineered aircraft components that are used in in-service commercial and military aircraft. The company has an extensive portfolio of proprietary products, which boosts its competitive position. In addition, the company has a robust aftermarket business, which lends stability to its operations even in economic downturns, and produces higher margins as well.
The company has grown organically and has also made strategic acquisitions to expand its geographic presence and scope of services. Earlier this year, TransDigm completed the acquisition of aircraft and weapons lifting and pulling systems maker Breeze-Eastern Corporation, which will strengthen TransDigm’s foothold in the niche markets of highly engineered proprietary aerospace components.
However, the company is vulnerable to weakness in defense and commercial OEM markets. Heavy dependence of the military and defense market on government budgets also makes the company exposed to planned budgetary spending cuts and other presidential policies. Also, the company faces significant integration risks and expenses, related to its acquisitions.
The company has had a choppy earnings history. It beat the Zacks Consensus Estimate in two of the trailing four quarters, while missing in two, with an average positive surprise of 10.9%.
TRANSDIGM GROUP Price and EPS Surprise
TRANSDIGM GROUP Price and EPS Surprise | TRANSDIGM GROUP Quote
Currently, TDG has a Zacks Rank #3 (Hold) but that could definitely change following its third-quarter fiscal 2016 earnings report, which has just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: TDG’s adjusted earnings came in at $2.94 per share, beating the Zacks Consensus Estimate of $2.80 comfortably.
Revenue: Revenues of the company came in at $797.7 million, missing the Zacks Consensus Estimate of $822 million.
Key Stats: TDG saw progress in its commercial aftermarket business, and its commercial transport aerospace businesses continue to show strength. The company raised its top line and earnings guidance for fiscal 2016, incorporating the effect of the recently acquired ILC Holdings Inc. (the parent company of Data Device Corporation).
Stock Price: TDG shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this TDG earnings report later!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>