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TransDigm (TDG) Q2 Earnings Beat Estimates, Sales Up Y/Y
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TransDigm Group Incorporated (TDG - Free Report) reported second-quarter fiscal 2020 adjusted earnings of $5.10 per share, which surpassed the Zacks Consensus Estimate of $3.83 by 33.1%. Moreover, the bottom line increased 22.6% from $4.16 registered a year ago.
Barring one-time items, the company reported GAAP earnings of $5.63 per share compared with $3.56 in the year-ago quarter.
Sales
Net sales amounted to $1,443 million, reflecting growth of 23.5% from $1,168 million in the prior-year quarter. The reported figure also outpaced the Zacks Consensus Estimate of $1,429 million by 1%. Meanwhile, organic sales grew 4.8%.
Operating Results
Net income from continuing operations for the quarter increased 61.5% to $323 million compared with $200 million in the comparable quarter a year ago.
The effective tax rate was 4.2% compared with 24.2% for the comparable period in fiscal 2019.
Transdigm Group Incorporated Price, Consensus and EPS Surprise
TransDigm ended the second quarter of fiscal 2020 with cash and cash equivalents of $2,668 million, up from $1,467 million as of Sep 30, 2019. At the end of the reported quarter, the company’s long-term debt summed $17.93 billion, up from $16.47 billion as of Sep 30, 2019.
Cash from operating activities amounted to $594 million, as of Mar 28, 2020, compared with $453 million, as of Mar 30, 2019.
Fiscal 2020 Outlook
On Apr 2, 2020, the company withdrew its previously-provided financial guidance for the fiscal year ending Sep 30, 2020, due to the uncertainties concerning the ultimate impact of COVID-19 on the global market and economy.
Zacks Rank
Transdigm currently carries a Zacks Rank #5 (Strong Sell).
Recent Defense Releases
Lockheed Martin Corp. (LMT - Free Report) , a Zacks Rank #3 (Hold) company, reported first-quarter 2020 earnings of $6.08 per share, which surpassed the Zacks Consensus Estimate of $5.76 by 5.5%. The bottom line also improved 1.5% from the year-ago quarter’s $5.99. You can see the complete list of today’s Zacks #1 Rank stocks here.
General Dynamics Corporation (GD - Free Report) , a Zacks Rank #3 company, reported first-quarter 2020 earnings from continuing operations of $2.43 per share, which missed the Zacks Consensus Estimate of $2.46 by 1.2%. Moreover, earnings declined 5.1% from $2.56 in the year-ago quarter.
Teledyne Technologies Inc. (TDY - Free Report) , a Zacks Rank #3 company, reported first-quarter 2020 earnings of $2.28 per share, which surpassed the Zacks Consensus Estimate of $2.10 by 8.6%. The bottom line also improved 12.9% from the year-ago quarter’s $2.02.
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TransDigm (TDG) Q2 Earnings Beat Estimates, Sales Up Y/Y
TransDigm Group Incorporated (TDG - Free Report) reported second-quarter fiscal 2020 adjusted earnings of $5.10 per share, which surpassed the Zacks Consensus Estimate of $3.83 by 33.1%. Moreover, the bottom line increased 22.6% from $4.16 registered a year ago.
Barring one-time items, the company reported GAAP earnings of $5.63 per share compared with $3.56 in the year-ago quarter.
Sales
Net sales amounted to $1,443 million, reflecting growth of 23.5% from $1,168 million in the prior-year quarter. The reported figure also outpaced the Zacks Consensus Estimate of $1,429 million by 1%. Meanwhile, organic sales grew 4.8%.
Operating Results
Net income from continuing operations for the quarter increased 61.5% to $323 million compared with $200 million in the comparable quarter a year ago.
The effective tax rate was 4.2% compared with 24.2% for the comparable period in fiscal 2019.
Transdigm Group Incorporated Price, Consensus and EPS Surprise
Transdigm Group Incorporated price-consensus-eps-surprise-chart | Transdigm Group Incorporated Quote
Financial Position
TransDigm ended the second quarter of fiscal 2020 with cash and cash equivalents of $2,668 million, up from $1,467 million as of Sep 30, 2019. At the end of the reported quarter, the company’s long-term debt summed $17.93 billion, up from $16.47 billion as of Sep 30, 2019.
Cash from operating activities amounted to $594 million, as of Mar 28, 2020, compared with $453 million, as of Mar 30, 2019.
Fiscal 2020 Outlook
On Apr 2, 2020, the company withdrew its previously-provided financial guidance for the fiscal year ending Sep 30, 2020, due to the uncertainties concerning the ultimate impact of COVID-19 on the global market and economy.
Zacks Rank
Transdigm currently carries a Zacks Rank #5 (Strong Sell).
Recent Defense Releases
Lockheed Martin Corp. (LMT - Free Report) , a Zacks Rank #3 (Hold) company, reported first-quarter 2020 earnings of $6.08 per share, which surpassed the Zacks Consensus Estimate of $5.76 by 5.5%. The bottom line also improved 1.5% from the year-ago quarter’s $5.99. You can see the complete list of today’s Zacks #1 Rank stocks here.
General Dynamics Corporation (GD - Free Report) , a Zacks Rank #3 company, reported first-quarter 2020 earnings from continuing operations of $2.43 per share, which missed the Zacks Consensus Estimate of $2.46 by 1.2%. Moreover, earnings declined 5.1% from $2.56 in the year-ago quarter.
Teledyne Technologies Inc. (TDY - Free Report) , a Zacks Rank #3 company, reported first-quarter 2020 earnings of $2.28 per share, which surpassed the Zacks Consensus Estimate of $2.10 by 8.6%. The bottom line also improved 12.9% from the year-ago quarter’s $2.02.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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