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TransDigm (TDG) Q4 Earnings Beat Estimates, Sales Rise Y/Y

TransDigm Group Incorporated TDG reported fourth-quarter fiscal 2022 adjusted earnings of $5.50 per share, which beat the Zacks Consensus Estimate of $4.46. The bottom line improved by a solid 29.4% from the $4.25 per share reported a year ago.

Barring one-time items, the company reported GAAP earnings of $3.98 per share compared with the $3.58 generated in the year-ago quarter.

TransDigm reported an adjusted EPS of $17.14 for full-year 2022, which increased 41.3% from the $12.13 reported in 2021. The adjusted EPS also beat the Zacks Consensus Estimate of $16.72 by 2.5%.

Sales

Net sales amounted to $1,510 million in the fiscal fourth quarter, increasing 18% from $1,279 million in the prior-year quarter. The reported figure also beat the Zacks Consensus Estimate of $1,508.6 million by 0.1%.

In 2022, TDG generated sales worth $5,429 million, up 13% from the year-ago figure. The reported figure came in line with the Zacks Consensus Estimate.

Transdigm Group Incorporated Price, Consensus and EPS Surprise

Transdigm Group Incorporated Price, Consensus and EPS Surprise
Transdigm Group Incorporated Price, Consensus and EPS Surprise

Transdigm Group Incorporated price-consensus-eps-surprise-chart | Transdigm Group Incorporated Quote

Operating Results

The gross profit for the quarter rose 22.1% to $885 million from $725 million in the comparable quarter a year ago.

The income from continuing operations increased 27% year over year to $266 million. The increase in the income from continuing operations was primarily due to a rise in net sales and a favorable sales mix.

Financial Position

TransDigm’s cash and cash equivalents as of Sep 30, 2022 were $3,001 million, down from $4,787 million as of Sep 30, 2021.

At the end of fiscal 2022, TDG’s long-term debt was $19.37 billion, in line with the long-term debt as of Sep 30, 2021.

Cash from operating activities amounted to $948 million for fiscal 2022 compared with $913 million at the end of 2021.

Guidance

TransDigm initiated its financial guidance for fiscal 2023. The company expects sales in the band of $5,990-$6,190 million. The Zacks Consensus Estimate for the company’s full-year sales is pegged at $6.05 million, slightly lower than the midpoint of the company’s guided range.

The company expects fiscal 2023 adjusted earnings in the range of $20.68-$22.08 per share. The Zacks Consensus Estimate for its full-year earnings is pegged at $21.37 per share, in line with the midpoint of the company’s guided range.

Zacks Rank

TransDigm currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Spirit AeroSystems Holdings, Inc. SPR reported a third-quarter 2022 adjusted loss of 25 cents per share, narrower than the Zacks Consensus Estimate for a loss of 39 cents. The bottom line improved significantly from the year-ago quarter’s loss of $1.13 per share.

Total revenues of $1,277 million lagged the Zacks Consensus Estimate of $1,295 million by 1.4%. However, the top line rose 30% on a year-over-year basis, driven by the higher production deliveries of the Boeing 737 and increased aftermarket revenues.

Hexcel Corporation HXL reported third-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 32 cents by 3.1%. The bottom line improved massively from the year-ago earnings of 8 cents per share, reflecting growth of a solid 153.8%.

In the third quarter, net sales totaled $364.7 million, which lagged the Zacks Consensus Estimate of $391 million by 6.8%. However, the top line witnessed an improvement of 9.3% from the year-ago quarter’s $333.8 million.

Leidos Holdings, Inc.’s LDOS third-quarter 2022 adjusted earnings of $1.59 per share beat the Zacks Consensus Estimate of $1.56 by 1.9%. However, the bottom line declined 11.7% from the $1.80 per share registered a year ago.

Leidos Holdings generated total revenues of $3,600 million in the quarter under consideration, exceeding the Zacks Consensus Estimate of $3,543.9 million by 1.6%. The top line also improved 4% year over year.


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