TransDigm Group to Announce Q1 Earnings on February 3
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 21h ago
0mins
Should l Buy TDG?
Source: seekingalpha
- Earnings Announcement: TransDigm Group is set to release its Q1 earnings report on February 3 before market open, with consensus EPS estimates at $8.04, reflecting a 2.7% year-over-year increase, indicating stability in profitability.
- Revenue Expectations: The anticipated revenue for Q1 is $2.25 billion, representing a 12.5% year-over-year growth, which underscores strong demand and ongoing growth potential in the aerospace components market.
- Historical Performance: Over the past two years, TransDigm has exceeded EPS estimates 88% of the time and revenue estimates 63% of the time, showcasing the company's reliability in financial performance.
- Estimate Revision Trends: In the last three months, EPS estimates have seen one upward revision and six downward adjustments, while revenue estimates experienced two upward revisions and five downward adjustments, indicating some market divergence in expectations for the company's future performance.
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Analyst Views on TDG
Wall Street analysts forecast TDG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TDG is 1600 USD with a low forecast of 1400 USD and a high forecast of 1900 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
10 Buy
3 Hold
0 Sell
Strong Buy
Current: 1435.520
Low
1400
Averages
1600
High
1900
Current: 1435.520
Low
1400
Averages
1600
High
1900
About TDG
TransDigm Group Incorporated, through its wholly owned subsidiaries, is a global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service. Its segments include Power & Control, Airframe and Non-aviation. Its product offerings provided to end-users in the aerospace industry include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, databus and power controls, cockpit security components and systems, specialized and advanced cockpit displays, engineered audio, radio and antenna systems, specialized lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
TransDigm Group to Announce Q1 Earnings on February 3
- Earnings Announcement: TransDigm Group is set to release its Q1 earnings report on February 3 before market open, with consensus EPS estimates at $8.04, reflecting a 2.7% year-over-year increase, indicating stability in profitability.
- Revenue Expectations: The anticipated revenue for Q1 is $2.25 billion, representing a 12.5% year-over-year growth, which underscores strong demand and ongoing growth potential in the aerospace components market.
- Historical Performance: Over the past two years, TransDigm has exceeded EPS estimates 88% of the time and revenue estimates 63% of the time, showcasing the company's reliability in financial performance.
- Estimate Revision Trends: In the last three months, EPS estimates have seen one upward revision and six downward adjustments, while revenue estimates experienced two upward revisions and five downward adjustments, indicating some market divergence in expectations for the company's future performance.
See More
TransDigm Group Reports Strong Q1 Results but Lowers Full-Year Outlook
- Strong Performance: TransDigm Group reported Q1 revenue of $2.29 billion, a 14% increase year-over-year, exceeding analyst expectations of $2.25 billion, indicating robust performance in the aerospace parts market.
- Adjusted EPS Beat: The company posted adjusted earnings per share of $8.23, surpassing Wall Street's forecast of $8.04, although net income fell from $493 million last year to $445 million, reflecting higher interest expenses impacting profitability.
- Fiscal 2026 Outlook: TransDigm expects net sales for fiscal 2026 to range from $9.85 billion to $10.04 billion, representing a 12.6% growth from $8.83 billion in fiscal 2025, yet still falling short of the $9.93 billion consensus estimate, disappointing investors.
- Slower Profit Growth: Despite management's optimism regarding demand trends in commercial aerospace and defense markets, the company maintained a cautious profit growth outlook due to increased interest expenses from prior financing activities, which may weigh on annual net income.
See More
TransDigm Q1 Earnings Exceed Expectations with Upward Guidance
- Strong Earnings Performance: TransDigm reported a Q1 Non-GAAP EPS of $8.23, beating expectations by $0.19, which underscores the company's robust profitability and enhances market confidence in its financial health.
- Significant Revenue Growth: The company achieved revenues of $2.29 billion, reflecting a 13.9% year-over-year increase and surpassing market expectations by $40 million, indicating sustained demand in the aerospace sector that drives overall performance.
- Upward Financial Guidance: TransDigm has revised its fiscal 2026 net sales guidance to a range of $9.845 billion to $10.035 billion, up from $8.831 billion in fiscal 2025, representing a 12.6% increase, which reflects the company's optimistic outlook on future market growth.
- Stable EBITDA Growth: The anticipated EBITDA for fiscal 2026 is projected to be between $5.14 billion and $5.28 billion, up 9.5% from $4.76 billion in fiscal 2025, demonstrating ongoing improvements in cost control and profitability.
See More
TransDigm Reports 13.9% Increase in Q1 Net Sales
- Sales Performance Boost: TransDigm's Q1 net sales reached $2.285 billion, reflecting a 13.9% year-over-year increase, indicating strong demand in the aerospace components market that is expected to drive future revenue growth.
- Net Income Decline: Despite sales growth, net income fell to $445 million, a 9.7% decrease primarily due to increased interest expenses, highlighting pressure on the company's debt management that could impact future profitability.
- Strong EBITDA Performance: The first quarter EBITDA was $1.147 billion, up 5.5% year-over-year, with an EBITDA margin of 52.4%, demonstrating ongoing improvements in cost control and operational efficiency that enhance market competitiveness.
- Active Acquisition Strategy: TransDigm announced plans to acquire Stellant and Jet Parts Engineering for approximately $3.2 billion, which will strengthen its product portfolio and aftermarket capabilities in the aerospace market, further solidifying its market position.
See More
TransDigm Reports 13.9% Increase in Q1 Net Sales
- Sales Performance Boost: TransDigm's Q1 net sales reached $2.285 billion, reflecting a 13.9% year-over-year increase, primarily driven by a 7.4% organic sales growth, indicating robust demand in the aerospace components market.
- Net Income Decline: Despite the sales growth, net income fell to $445 million, a 9.7% decrease, primarily due to increased interest expenses, highlighting the need for careful monitoring of the company's financial health amid rising debt levels.
- Strong EBITDA Performance: The first quarter EBITDA was $1.147 billion, up 5.5% year-over-year, with an EBITDA margin of 52.4%, although impacted by acquisition dilution, the core business profitability showed improvement.
- Acquisition Plans Expansion: The company announced agreements to acquire Stellant, Jet Parts Engineering, and Victor Sierra for approximately $3.2 billion, which will enhance TransDigm's competitive position in the aerospace market and drive future growth.
See More
Preview of the Review: Cast No Shadow
- Stock Market Performance: Stocks are experiencing a rise similar to January's performance, indicating positive investor sentiment.
- Influencing Factors: Fresh economic data and a strong upcoming earnings season are contributing to the optimistic outlook among investors.
See More
TransDigm Group to Announce Q1 Earnings on February 3
- Earnings Announcement: TransDigm Group is set to release its Q1 earnings report on February 3 before market open, with consensus EPS estimates at $8.04, reflecting a 2.7% year-over-year increase, indicating stability in profitability.
- Revenue Expectations: The anticipated revenue for Q1 is $2.25 billion, representing a 12.5% year-over-year growth, which underscores strong demand and ongoing growth potential in the aerospace components market.
- Historical Performance: Over the past two years, TransDigm has exceeded EPS estimates 88% of the time and revenue estimates 63% of the time, showcasing the company's reliability in financial performance.
- Estimate Revision Trends: In the last three months, EPS estimates have seen one upward revision and six downward adjustments, while revenue estimates experienced two upward revisions and five downward adjustments, indicating some market divergence in expectations for the company's future performance.
See More
TransDigm Group Reports Strong Q1 Results but Lowers Full-Year Outlook
- Strong Performance: TransDigm Group reported Q1 revenue of $2.29 billion, a 14% increase year-over-year, exceeding analyst expectations of $2.25 billion, indicating robust performance in the aerospace parts market.
- Adjusted EPS Beat: The company posted adjusted earnings per share of $8.23, surpassing Wall Street's forecast of $8.04, although net income fell from $493 million last year to $445 million, reflecting higher interest expenses impacting profitability.
- Fiscal 2026 Outlook: TransDigm expects net sales for fiscal 2026 to range from $9.85 billion to $10.04 billion, representing a 12.6% growth from $8.83 billion in fiscal 2025, yet still falling short of the $9.93 billion consensus estimate, disappointing investors.
- Slower Profit Growth: Despite management's optimism regarding demand trends in commercial aerospace and defense markets, the company maintained a cautious profit growth outlook due to increased interest expenses from prior financing activities, which may weigh on annual net income.
See More
TransDigm Q1 Earnings Exceed Expectations with Upward Guidance
- Strong Earnings Performance: TransDigm reported a Q1 Non-GAAP EPS of $8.23, beating expectations by $0.19, which underscores the company's robust profitability and enhances market confidence in its financial health.
- Significant Revenue Growth: The company achieved revenues of $2.29 billion, reflecting a 13.9% year-over-year increase and surpassing market expectations by $40 million, indicating sustained demand in the aerospace sector that drives overall performance.
- Upward Financial Guidance: TransDigm has revised its fiscal 2026 net sales guidance to a range of $9.845 billion to $10.035 billion, up from $8.831 billion in fiscal 2025, representing a 12.6% increase, which reflects the company's optimistic outlook on future market growth.
- Stable EBITDA Growth: The anticipated EBITDA for fiscal 2026 is projected to be between $5.14 billion and $5.28 billion, up 9.5% from $4.76 billion in fiscal 2025, demonstrating ongoing improvements in cost control and profitability.
See More
TransDigm Reports 13.9% Increase in Q1 Net Sales
- Sales Performance Boost: TransDigm's Q1 net sales reached $2.285 billion, reflecting a 13.9% year-over-year increase, indicating strong demand in the aerospace components market that is expected to drive future revenue growth.
- Net Income Decline: Despite sales growth, net income fell to $445 million, a 9.7% decrease primarily due to increased interest expenses, highlighting pressure on the company's debt management that could impact future profitability.
- Strong EBITDA Performance: The first quarter EBITDA was $1.147 billion, up 5.5% year-over-year, with an EBITDA margin of 52.4%, demonstrating ongoing improvements in cost control and operational efficiency that enhance market competitiveness.
- Active Acquisition Strategy: TransDigm announced plans to acquire Stellant and Jet Parts Engineering for approximately $3.2 billion, which will strengthen its product portfolio and aftermarket capabilities in the aerospace market, further solidifying its market position.
See More
TransDigm Reports 13.9% Increase in Q1 Net Sales
- Sales Performance Boost: TransDigm's Q1 net sales reached $2.285 billion, reflecting a 13.9% year-over-year increase, primarily driven by a 7.4% organic sales growth, indicating robust demand in the aerospace components market.
- Net Income Decline: Despite the sales growth, net income fell to $445 million, a 9.7% decrease, primarily due to increased interest expenses, highlighting the need for careful monitoring of the company's financial health amid rising debt levels.
- Strong EBITDA Performance: The first quarter EBITDA was $1.147 billion, up 5.5% year-over-year, with an EBITDA margin of 52.4%, although impacted by acquisition dilution, the core business profitability showed improvement.
- Acquisition Plans Expansion: The company announced agreements to acquire Stellant, Jet Parts Engineering, and Victor Sierra for approximately $3.2 billion, which will enhance TransDigm's competitive position in the aerospace market and drive future growth.
See More
Preview of the Review: Cast No Shadow
- Stock Market Performance: Stocks are experiencing a rise similar to January's performance, indicating positive investor sentiment.
- Influencing Factors: Fresh economic data and a strong upcoming earnings season are contributing to the optimistic outlook among investors.
See More
