TransDigm Group Incorporated (NYSE:TDG) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
TransDigm Group Incorporated Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 5.45% to $1.74 in the quarter versus EPS of $1.65 in the year-earlier quarter.
Revenue: Rose 9.95% to $465.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: TransDigm Group Incorporated reported adjusted EPS income of $1.74 per share. By that measure, the company beat the mean analyst estimate of $1.73. It missed the average revenue estimate of $466.16 million.
Quoting Management: “Despite the continued uncertain global economic and defense market environments, we are pleased with our Company’s overall results in both the fiscal second quarter and year-to-date periods,” stated W. Nicholas Howley, TransDigm Group’s Chairman and Chief Executive Officer. “Although both periods benefitted from recent acquisitions, our organic commercial OEM and defense revenues continued to perform well given the difficult market conditions. In spite of our commercial aftermarket revenues continuing softer than anticipated and acquisition dilution of approximately 2.5 margin points, our first half EBITDA As Defined margin remained strong at 47%.”
Key Stats (on next page)…