The 10-second takeaway
For the quarter ended Dec. 29 (Q1), TransDigm Group met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
TransDigm Group tallied revenue of $430.4 million. The 13 analysts polled by S&P Capital IQ predicted a top line of $426.5 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $352.5 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 $1.51. The 13 earnings estimates compiled by S&P Capital IQ predicted $1.54 per share. GAAP EPS of $0.66 for Q1 were 43% lower than the prior-year quarter's $1.15 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 55.4%, 230 basis points worse than the prior-year quarter. Operating margin was 40.2%, 210 basis points worse than the prior-year quarter. Net margin was 17.2%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $481.1 million. On the bottom line, the average EPS estimate is $1.74.
Next year's average estimate for revenue is $1.91 billion. The average EPS estimate is $6.98.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 352 members out of 370 rating the stock outperform, and 18 members rating it underperform. Among 131 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 126 give TransDigm Group a green thumbs-up, and five 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 $144.08.
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