TransDigm Group Incorporated (TDG - Free Report) reported fourth-quarter fiscal 2018 adjusted earnings of $4.44 per share, which surpassed the Zacks Consensus Estimate of $4.27 by 4%. Moreover, the bottom line improved 27.6% from $3.48 a year ago.
Barring one-time items, the company reported GAAP earnings of $4.14 per share compared with $2.21 in the year-ago quarter. The year-over-year upside was driven by increase in net sales and lower effective tax rate, owing to the enactment of U.S. Tax Cuts and Jobs Act.
Net sales amounted to $1,049.4 million, reflecting year-over-year growth of 13.6% from $923.9 million. Further, the reported figure surpassed the Zacks Consensus Estimate of $1,033 million by 1.6%. Organic sales grew 7.7%.
Decent sales growth in commercial aftermarket and defense contributed to the company’s top-line performance in the quarter under review.
TransDigm frequently acquires proprietary aerospace businesses with significant aftermarket content, which strengthen the company’s foothold in its core market and are in line with its operating strategies. Evidently, on Jul 13, 2018, TransDigm completed the acquisition of Skandia Inc. from Graycliff Partners for approximately $84 million. Notably, Skandia is a leading provider of highly engineered foam, foam fabrication, flammability testing and acoustic solutions for the business jet market.
We expect TransDigm’s acquisition spree to boost its product range with the proprietary products, which enjoy strong position on high use of platforms, robust aftermarket content and an excellent reputation.
Transdigm Group Incorporated Price, Consensus and EPS Surprise