What: Shares of aircraft supplier TransDigm Group Incorporated (TDG 0.94%) jumped 11% late Tuesday after the company reported strong fiscal second quarter results.
So what: Revenue rose 28.7% to $796.8 million and net income was up 25% to $138.6 million, or $2.47 per share. Adjusted earnings per share were $2.86 versus the $2.60 analysts expected.
Helping shares today was an increase in guidance to revenue of $3.15 billion-$3.18 billion and earnings per share of $9.89-$10.13. Adjusted earnings per share are expected to be $11.04-$11.28 where analysts were expecting $10.82 in earnings for the year.
Now what: Improvement in the commercial aftermarket segment was the biggest driver of results and the increased guidance. These sales should be fairly consistent, but there's been a disconnect in the last few quarters with customers putting off purchases. On the defense side of the business bookings were also up significantly, which should help drive revenue for the next few quarters. With the aircraft business taking off globally, TransDigm is set to be a big beneficiary and we saw that in full force with last quarter's performance.