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TransDigm Group Q4 Earnings Beat Estimates, Sales Increase Y/Y
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TransDigm Group Incorporated (TDG - Free Report) reported fourth-quarter fiscal 2024 adjusted earnings of $9.83 per share, which beat the Zacks Consensus Estimate of $9.24 by 6.4%. The bottom line also improved 22.4% from the prior-year quarter’s reported figure of $8.03.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Barring one-time items, the company recorded GAAP earnings of $5.80 per share compared with $7.23 in the year-ago quarter.
The year-over-year decline in the bottom line was due to dividend equivalent payments accrued in the fourth quarter related to the $75.00 per share dividend declared on Sept. 19, 2024, and paid on Oct. 18, 2024.
Transdigm Group Incorporated Price, Consensus and EPS Surprise
For fiscal 2024, the company reported adjusted earnings of $33.99 per share, which came in higher than the year-ago figure of $25.84. The full-year bottom line also outpaced the consensus estimate of $33.38.
Q4 Sales Discussion
Sales amounted to $2.19 billion, up 18% from $1.85 billion registered in the prior-year period. The reported figure also beat the Zacks Consensus Estimate of $2.16 billion by 1.1%.
Organic sales as a percentage of net sales grew 12.2%.
For fiscal 2024, the company reported net sales of $7.94 billion, which came in higher than the year-ago figure of $6.59 billion. The full-year sales also beat the Zacks Consensus Estimate of $7.91 billion.
Operating Results
The gross profit for the quarter came in at $1.26 billion, up 15.3% from the year-ago quarter’s level of $1.09 billion.
TDG’s interest expense increased 17.4% year over year to $343 million.
Net income increased 13% year over year to $468 million. The growth was primarily driven by an increase in net sales and the application of the company’s value-driven operating strategy.
Financial Position
Cash and cash equivalents as of Sept. 30, 2024, amounted to $6.26 billion, up from $3.47 billion recorded as of Sept. 30, 2023.
Long-term debt totaled $24.30 billion compared with $19.33 billion as of Sept. 30, 2023.
Cash from operating activities amounted to $2.05 billion compared with $1.38 billion at the end of the fourth quarter of fiscal 2023.
Guidance Issued
TransDigm issued its guidance for fiscal 2025. The company expects sales to be in the range of $8.75-$8.95 billion. The Zacks Consensus Estimate for the same is pegged at $8.89 billion, higher than the midpoint of the company’s guided range.
TDG expects fiscal 2025 adjusted earnings to be in the band of $35.36-$37.28 per share. The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $39.72 per share, higher than the company’s guided range.
Huntington Ingalls Industries, Inc.’s (HII - Free Report) fourth-quarter 2024 earnings of $2.56 per share declined 30.8% from $3.70 reported in the prior-year quarter. The bottom line also missed the Zacks Consensus Estimate of $3.84 by 33.3%.
Revenues for the quarter totaled $2.75 billion, which missed the Zacks Consensus Estimate of $2.88 billion by 4.5%. The top line also declined 2.4% from $2.82 billion recorded in the year-ago quarter due to lower sales volume from its Ingalls and Newport News business segments.
RTX Corporation’s (RTX - Free Report) third-quarter 2024 adjusted earnings per share (EPS) of $1.45 beat the Zacks Consensus Estimate of $1.33 by 9%. The bottom line also improved 16% from the year-ago level of $1.25, driven by growth in adjusted segment operating profit and a lower effective tax rate.
Its third-quarter sales totaled $20.09 billion, which surpassed the Zacks Consensus Estimate of $19.91 billion by 0.9%. The top line also surged a solid 49.2% from $13.46 billion recorded in the third quarter of 2023.
Textron Inc. (TXT - Free Report) reported third-quarter 2024 adjusted earnings of $1.40 per share, which missed the Zacks Consensus Estimate of $1.46 by 4.1%. The bottom line also declined 6% from $1.49 in the year-ago quarter.
TXT reported total revenues of $3.43 billion, which missed the Zacks Consensus Estimate of $3.51 billion by 2.3%. However, revenues increased 2.5% from the year-ago level of $3.34 billion.
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TransDigm Group Q4 Earnings Beat Estimates, Sales Increase Y/Y
TransDigm Group Incorporated (TDG - Free Report) reported fourth-quarter fiscal 2024 adjusted earnings of $9.83 per share, which beat the Zacks Consensus Estimate of $9.24 by 6.4%. The bottom line also improved 22.4% from the prior-year quarter’s reported figure of $8.03.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Barring one-time items, the company recorded GAAP earnings of $5.80 per share compared with $7.23 in the year-ago quarter.
The year-over-year decline in the bottom line was due to dividend equivalent payments accrued in the fourth quarter related to the $75.00 per share dividend declared on Sept. 19, 2024, and paid on Oct. 18, 2024.
Transdigm Group Incorporated Price, Consensus and EPS Surprise
Transdigm Group Incorporated price-consensus-eps-surprise-chart | Transdigm Group Incorporated Quote
For fiscal 2024, the company reported adjusted earnings of $33.99 per share, which came in higher than the year-ago figure of $25.84. The full-year bottom line also outpaced the consensus estimate of $33.38.
Q4 Sales Discussion
Sales amounted to $2.19 billion, up 18% from $1.85 billion registered in the prior-year period. The reported figure also beat the Zacks Consensus Estimate of $2.16 billion by 1.1%.
Organic sales as a percentage of net sales grew 12.2%.
For fiscal 2024, the company reported net sales of $7.94 billion, which came in higher than the year-ago figure of $6.59 billion. The full-year sales also beat the Zacks Consensus Estimate of $7.91 billion.
Operating Results
The gross profit for the quarter came in at $1.26 billion, up 15.3% from the year-ago quarter’s level of $1.09 billion.
TDG’s interest expense increased 17.4% year over year to $343 million.
Net income increased 13% year over year to $468 million. The growth was primarily driven by an increase in net sales and the application of the company’s value-driven operating strategy.
Financial Position
Cash and cash equivalents as of Sept. 30, 2024, amounted to $6.26 billion, up from $3.47 billion recorded as of Sept. 30, 2023.
Long-term debt totaled $24.30 billion compared with $19.33 billion as of Sept. 30, 2023.
Cash from operating activities amounted to $2.05 billion compared with $1.38 billion at the end of the fourth quarter of fiscal 2023.
Guidance Issued
TransDigm issued its guidance for fiscal 2025. The company expects sales to be in the range of $8.75-$8.95 billion. The Zacks Consensus Estimate for the same is pegged at $8.89 billion, higher than the midpoint of the company’s guided range.
TDG expects fiscal 2025 adjusted earnings to be in the band of $35.36-$37.28 per share. The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $39.72 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 Defense Releases
Huntington Ingalls Industries, Inc.’s (HII - Free Report) fourth-quarter 2024 earnings of $2.56 per share declined 30.8% from $3.70 reported in the prior-year quarter. The bottom line also missed the Zacks Consensus Estimate of $3.84 by 33.3%.
Revenues for the quarter totaled $2.75 billion, which missed the Zacks Consensus Estimate of $2.88 billion by 4.5%. The top line also declined 2.4% from $2.82 billion recorded in the year-ago quarter due to lower sales volume from its Ingalls and Newport News business segments.
RTX Corporation’s (RTX - Free Report) third-quarter 2024 adjusted earnings per share (EPS) of $1.45 beat the Zacks Consensus Estimate of $1.33 by 9%. The bottom line also improved 16% from the year-ago level of $1.25, driven by growth in adjusted segment operating profit and a lower effective tax rate.
Its third-quarter sales totaled $20.09 billion, which surpassed the Zacks Consensus Estimate of $19.91 billion by 0.9%. The top line also surged a solid 49.2% from $13.46 billion recorded in the third quarter of 2023.
Textron Inc. (TXT - Free Report) reported third-quarter 2024 adjusted earnings of $1.40 per share, which missed the Zacks Consensus Estimate of $1.46 by 4.1%. The bottom line also declined 6% from $1.49 in the year-ago quarter.
TXT reported total revenues of $3.43 billion, which missed the Zacks Consensus Estimate of $3.51 billion by 2.3%. However, revenues increased 2.5% from the year-ago level of $3.34 billion.