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TransDigm (TDG) Q4 Earnings Preview: What You Should Know Beyond the Headline Estimates

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Wall Street analysts forecast that TransDigm Group (TDG - Free Report) will report quarterly earnings of $9.25 per share in its upcoming release, pointing to a year-over-year increase of 15.2%. It is anticipated that revenues will amount to $2.16 billion, exhibiting an increase of 16.8% compared to the year-ago quarter.

The consensus EPS estimate for the quarter has undergone a downward revision of 1.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

Given this perspective, it's time to examine the average forecasts of specific TransDigm metrics that are routinely monitored and predicted by Wall Street analysts.

Based on the collective assessment of analysts, 'Net sales to external customers- Non-aviation' should arrive at $57.54 million. The estimate suggests a change of +19.9% year over year.

The collective assessment of analysts points to an estimated 'Net sales to external customers- Airframe' of $1.02 billion. The estimate indicates a year-over-year change of +15%.

Analysts expect 'Net sales to external customers- Power & Control' to come in at $1.08 billion. The estimate indicates a year-over-year change of +17.9%.

The average prediction of analysts places 'Net sales to external customers- Airframe- Commercial and non-aerospace OEM' at $306.21 million. The estimate indicates a change of +13.4% from the prior-year quarter.

The combined assessment of analysts suggests that 'Net sales to external customers- Airframe- Defense' will likely reach $312.29 million. The estimate suggests a change of +7.7% year over year.

Analysts predict that the 'Net sales to external customers- Power & Control- Defense' will reach $542.63 million. The estimate indicates a change of +18.7% from the prior-year quarter.

The consensus among analysts is that 'Net sales to external customers- Power & Control- Commercial and non-aerospace aftermarket' will reach $337.11 million. The estimate points to a change of +27.7% from the year-ago quarter.

Analysts' assessment points toward 'Net sales to external customers- Power & Control- Commercial and non-aerospace OEM' reaching $235.40 million. The estimate indicates a year-over-year change of +22%.

According to the collective judgment of analysts, 'Net sales to external customers- Airframe- Commercial and non-aerospace aftermarket' should come in at $349.36 million. The estimate suggests a change of +5.9% year over year.

The consensus estimate for 'EBITDA- Power & Control' stands at $590.06 million. The estimate compares to the year-ago value of $525 million.

Analysts forecast 'EBITDA- Non-aviation' to reach $21.42 million. The estimate is in contrast to the year-ago figure of $19 million.

It is projected by analysts that the 'EBITDA- Airframe' will reach $530.08 million. Compared to the current estimate, the company reported $446 million in the same quarter of the previous year.

View all Key Company Metrics for TransDigm here>>>

TransDigm shares have witnessed a change of -3.8% in the past month, in contrast to the Zacks S&P 500 composite's +0.4% move. With a Zacks Rank #3 (Hold), TDG is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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