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TransDigm Group Incorporated (TDG - Free Report) reported third-quarter fiscal 2019 adjusted earnings of $4.95 per share, which surpassed the Zacks Consensus Estimate of $4.31 by 14.8%. Moreover, the bottom line increased 23.4% from $4.01 registered a year ago.
Barring one-time items, the company reported GAAP earnings of $2.57 per share compared with $3.91 in the year-ago quarter.
Sales
Net sales amounted to $1,658.3 million, reflecting year-over-year surge of 69.1% from $980.7 million in the prior-year quarter. The reported figure also outpaced the Zacks Consensus Estimate of $1,581 million by 4.9%.
Meanwhile, organic sales grew 11.8%. Acquisition sales contributed $561.4 million, of which $545.3 million were from Esterline Technologies Corporation.
Financial Position
TransDigm ended the third quarter of fiscal 2019 with cash and cash equivalents of $2,716.8 million, up from $2,073 million as of Sep 30, 2018. At the end of the reported quarter, the company’s long-term debt summed $16.5 billion, up from $12.5 billion as of Sep 30, 2018.
Cash from operating activities amounted to $768.4 million as of Jun 29, 2019, compared with $690.9 million as of Jun 30, 2018.
Transdigm Group Incorporated Price, Consensus and EPS Surprise
TransDigm raised its 2019 financial guidance. Net sales are now anticipated to be $5,500-$5,550 million compared with the prior guidance of $5,395-5,485 million.
EBITDA is anticipated to be $2,425-$2,445 million compared with the prior guidance of $2,325-$2,365 million.
Adjusted earnings per share are currently expected to be $17.93-$18.25 compared with $16.47-$17.15 guided earlier.
Acquisition-related transaction and integration costs were $230 million. GAAP and cash effective tax rate was 24-25%, with an adjusted tax rate of 26.5%.
Textron Inc. (TXT - Free Report) reported second-quarter 2019 earnings from continuing operations of 93 cents per share, which surpassed the Zacks Consensus Estimate of 85 cents by 9.4%. The bottom line also increased 6.9% from 87 cents in the year-ago quarter.
Lockheed Martin Corp. (LMT - Free Report) reported second-quarter 2019 earnings of $5 per share, which surpassed the Zacks Consensus Estimate of $4.74 by 5.5%. The bottom line also improved 23.5% from $4.05 in the year-ago quarter.
Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) reported second-quarter 2019 earnings of 8 cents per share, which surpassed the Zacks Consensus Estimate of 7 cents by 14.3%. The bottom line also improved from the prior-year quarter’s earnings of 2 cents per share.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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TransDigm (TDG) Q3 Earnings Beat Estimates, FY19 View Raised
TransDigm Group Incorporated (TDG - Free Report) reported third-quarter fiscal 2019 adjusted earnings of $4.95 per share, which surpassed the Zacks Consensus Estimate of $4.31 by 14.8%. Moreover, the bottom line increased 23.4% from $4.01 registered a year ago.
Barring one-time items, the company reported GAAP earnings of $2.57 per share compared with $3.91 in the year-ago quarter.
Sales
Net sales amounted to $1,658.3 million, reflecting year-over-year surge of 69.1% from $980.7 million in the prior-year quarter. The reported figure also outpaced the Zacks Consensus Estimate of $1,581 million by 4.9%.
Meanwhile, organic sales grew 11.8%. Acquisition sales contributed $561.4 million, of which $545.3 million were from Esterline Technologies Corporation.
Financial Position
TransDigm ended the third quarter of fiscal 2019 with cash and cash equivalents of $2,716.8 million, up from $2,073 million as of Sep 30, 2018. At the end of the reported quarter, the company’s long-term debt summed $16.5 billion, up from $12.5 billion as of Sep 30, 2018.
Cash from operating activities amounted to $768.4 million as of Jun 29, 2019, compared with $690.9 million as of Jun 30, 2018.
Transdigm Group Incorporated Price, Consensus and EPS Surprise
Transdigm Group Incorporated price-consensus-eps-surprise-chart | Transdigm Group Incorporated Quote
Fiscal 2019 Outlook
TransDigm raised its 2019 financial guidance. Net sales are now anticipated to be $5,500-$5,550 million compared with the prior guidance of $5,395-5,485 million.
EBITDA is anticipated to be $2,425-$2,445 million compared with the prior guidance of $2,325-$2,365 million.
Adjusted earnings per share are currently expected to be $17.93-$18.25 compared with $16.47-$17.15 guided earlier.
Acquisition-related transaction and integration costs were $230 million. GAAP and cash effective tax rate was 24-25%, with an adjusted tax rate of 26.5%.
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
Textron Inc. (TXT - Free Report) reported second-quarter 2019 earnings from continuing operations of 93 cents per share, which surpassed the Zacks Consensus Estimate of 85 cents by 9.4%. The bottom line also increased 6.9% from 87 cents in the year-ago quarter.
Lockheed Martin Corp. (LMT - Free Report) reported second-quarter 2019 earnings of $5 per share, which surpassed the Zacks Consensus Estimate of $4.74 by 5.5%. The bottom line also improved 23.5% from $4.05 in the year-ago quarter.
Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) reported second-quarter 2019 earnings of 8 cents per share, which surpassed the Zacks Consensus Estimate of 7 cents by 14.3%. The bottom line also improved from the prior-year quarter’s earnings of 2 cents per share.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>