TransDigm's (TDG) Q2 Earnings Beat Estimates, Sales Rise Y/Y

TransDigm Group Incorporated TDG reported second-quarter fiscal 2022 adjusted earnings of $3.86 per share, which beat the Zacks Consensus Estimate of $3.71 by 4%. The bottom line improved a solid 50% from $2.58 reported a year ago.

Barring one-time items, the company reported GAAP earnings of $3.38 per share compared with $1.79 generated in the year-ago quarter.

This year-over-year improvement can be attributed to an increase in net sales, favorable sales mix, along with lower one-time refinancing costs as well as lower COVID-19 restructuring costs.

Sales

Net sales amounted to $1,327 million in the fiscal second quarter, increasing 11.1% from $1,194 million in the prior-year quarter. The reported figure also exceeded the Zacks Consensus Estimate of $1.31 million by 1.5%.

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

Gross profit for the quarter rose 24.3% to $736 million from $592 million in the comparable quarter a year ago.

Consequently, income from operations surged 32% year over year to $520 million.

Financial Position

TransDigm ended second-quarter fiscal 2022 with cash and cash equivalents of $4,216 million, down from $4,787 million as of Sep 30, 2021.

At the end of the fiscal second quarter, the company’s long-term debt was $19.39 billion, slightly up from $19.37 billion as of Sep 30, 2021.

Cash from operating activities amounted to $366 million as of Apr 2, 2022, compared with $372 million as of Apr 3, 2021.

Guidance

Given the continued disruptions in TransDigm’s primary commercial end markets, thanks to the impact of the COVID-19 pandemic, the company once again refrained from providing fiscal 2022 guidance.

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

Raytheon Technologies’ RTX first-quarter 2022 adjusted earnings per share (EPS) of $1.15 beat the Zacks Consensus Estimate of $1.01 by 13.9%. Moreover, the bottom-line figure improved 27.8% from the year-ago quarter’s adjusted earnings of 90 cents.

Raytheon’s first-quarter sales of $15,716 million missed the Zacks Consensus Estimate of $15,799 million by 0.5%. The sales figure, however, rose 3% from $15,251 million recorded in the year-ago quarter.

Lockheed Martin LMT reported first-quarter 2022 earnings of $6.44 per share, which surpassed the Zacks Consensus Estimate of $6.22 by 3.5%. The bottom line, however, declined 1.8% year over year.

Lockheed Martin’s net sales amounted to $14.96 billion, which missed the Zacks Consensus Estimate of $15.53 billion by 3.7%. The top line also declined 8% from $16.26 billion reported in the year-ago quarter

Teledyne Technologies Inc. TDY reported first-quarter 2022 adjusted earnings of $4.27 per share, which surpassed the Zacks Consensus Estimate of $4.09 by 4.4%. The bottom line also improved 33.9% from the year-ago quarter’s $3.19 per share.

Teledyne’s total sales in the first quarter amounted to $1,321 million, which exceeded the Zacks Consensus Estimate of $1,315 million by 0.5%. The top line also improved 64% from $805.7 million reported a year ago.

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