- TransDigm boosts full-year net sales forecast to $7.87 billion – $7.93 billion (previously $7.68 billion – $7.80 billion); estimate was $7.85 billion.
- Adjusted EPS forecast raised to $32.62 – $33.42 (previously $31.75 – $33.09); estimate was $33.18.
- Ebitda forecast updated to $4.10 billion – $4.16 billion (previously $4.00 billion – $4.10 billion); estimate was $4.11 billion.
- Third-quarter adjusted EPS reported at $9.00 compared to $7.25 year-over-year; estimate was $8.54.
- Third-quarter net sales reached $2.05 billion, a 17% increase year-over-year; estimate was $2.01 billion.
- Third-quarter Ebitda was $995 million, a 20% increase year-over-year; estimate was $998.8 million.
- Third-quarter operating income stood at $934 million, reflecting a 19% increase year-over-year; estimate was $926.9 million.
- Recent acquisitions include SEI Industries, CPI Electron Device Business, and Raptor Scientific.
- Analyst recommendations: 17 buys, 7 holds, 1 sell.
Transdigm Group on Smartkarma
Independent investment analysts on Smartkarma, such as Baptista Research, have provided insightful coverage on TransDigm Group. In the report titled “TransDigm Group: Will Their Core Business Strategy Work? – Major Drivers,” the group’s consistent strategy of focusing on intrinsic shareholder value creation through unique proprietary products is emphasized. With around 90% of net sales coming from these products and a significant portion of EBITDA from aftermarket revenues, TransDigm maintains higher margins and relative stability during industry downturns.
In another report by Baptista Research titled “TransDigm Group: A Strategic Focus on High IP,” the positive performance of TransDigm in the first quarter of 2024 is highlighted, with sales and EBITDA guidance being raised for the year. The report also discusses the favorable commercial aerospace market trends and the company’s strategic focus on high intellectual property. Baptista Research further aims to assess the various factors influencing the company’s valuation in the future, employing a Discounted Cash Flow methodology for an independent valuation.
A look at Transdigm Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts foresee a positive long-term outlook for Transdigm Group based on the Smartkarma Smart Scores. The company excels in growth and resilience, scoring a high 5 out of 5 for both factors. This suggests a promising trajectory for the manufacturer of aircraft components. With a strong momentum score of 4, Transdigm Group also shows favorable market performance. While the company may not currently offer a high dividend yield, its overall outlook remains favorable due to its robust growth prospects and ability to withstand market challenges.
Transdigm Group, a manufacturer of aircraft components, has garnered impressive scores in growth and resilience on the Smartkarma Smart Scores. Specializing in products like ignition systems, gear pumps, and cockpit security devices, the company demonstrates a commitment to innovation and reliability. With a solid momentum score reflecting market traction, Transdigm Group appears well-positioned for sustained success in the aviation industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
