The 10-second takeaway
For the quarter ended March 31 (Q2), TransDigm Group beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.
Margins grew across the board.
TransDigm Group tallied revenue of $423.5 million. The 17 analysts polled by S&P Capital IQ predicted revenue of $389.1 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $304.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.65. The 17 earnings estimates compiled by S&P Capital IQ predicted $1.46 per share. GAAP EPS of $1.51 for Q2 were 44% higher than the prior-year quarter's $1.05 per share. (The prior-year quarter included $0.36 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.2%, 80 basis points better than the prior-year quarter. Operating margin was 43.9%, 210 basis points better than the prior-year quarter. Net margin was 19.3%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $450.0 million. On the bottom line, the average EPS estimate is $1.70.
Next year's average estimate for revenue is $1.68 billion. The average EPS estimate is $6.48.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 267 members out of 280 rating the stock outperform, and 13 members rating it underperform. Among 96 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 95 give TransDigm Group a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TransDigm Group is outperform, with an average price target of $127.87.
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