TransDigm Group Incorporated (TDG) is slated to report second-quarter fiscal 2025 results on May 6, before market open.TransDigm delivered a trailing four-quarter average earnings surprise of 6.50%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)The improving growth trends in commercial air travel and strong defense sales are likely to have bolstered the quarterly performance.TDG’s Power & Control Segment to Remain RobustStrong sales from the commercial aftermarket, backed by stead ...

Wall Street analysts expect TransDigm Group (TDG) to post quarterly earnings of $8.85 per share in its upcoming report, which indicates a year-over-year increase of 10.8%. Revenues are expected to be $2.17 billion, up 12.9% from the year-ago quarter.Over the last 30 days, there has been a downward revision of 1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timef ...

SOURCE TransDigm Group Inc. About TransDigm Group TransDigm Group, through its wholly-owned subsidiaries, is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and ...

Group 1 - TransDigm Group Incorporated (NYSE: TDG) holds a dominant position in the aircraft parts industry and is well-positioned to leverage its pricing power to maintain an above-inflation target price for its products [1] - The company is expected to continue benefiting from its strong market position and pricing strategy, which could lead to sustained revenue growth [1] Group 2 - The article emphasizes the importance of data analytics in identifying investment opportunities within the equity markets, particularly in the context of construction project valuations [1] - The author highlights a value-oriented investment style focused on high-quality mid and small-cap companies, which aligns with the broader trends in retail investing [1]

Core Viewpoint - TransDigm Group has shown strong performance in its recent earnings report, surpassing estimates and demonstrating year-over-year growth, which raises questions about the sustainability of this positive trend leading up to the next earnings release [1][2]. Financial Performance - The company reported adjusted earnings of $7.83 per share for Q1 fiscal 2025, exceeding the Zacks Consensus Estimate of $7.48 by 4.7% and improving 9.4% from $7.16 per share in the prior-year quarter [2]. - Net sales reached $2.01 billion, a 12.1% increase from $1.79 billion in the same period last year, also beating the Zacks Consensus Estimate of $1.99 billion by 0.6% [4]. - Gross profit was $1.24 billion, up 18.5% from $1.04 billion in the prior-year quarter, while net income increased 29.1% year over year to $493 million [5]. Sales and Operating Results - Organic sales grew by 6.6% as a percentage of net sales, indicating strong underlying demand [4]. - The company experienced a 26% increase in interest expense year over year, totaling $378 million [5]. Financial Position - As of December 28, 2024, cash and cash equivalents were $2.46 billion, down from $6.26 billion as of September 30, 2024, while long-term debt remained stable at $24.30 billion [6]. - Cash from operating activities increased to $752 million compared to $636 million at the end of Q1 fiscal 2024 [6]. Guidance and Estimates - TransDigm revised its fiscal 2025 sales guidance to a range of $8.75-$8.95 billion, with the Zacks Consensus Estimate at $8.86 billion [7]. - The company now expects adjusted earnings for fiscal 2025 to be between $35.51-$37.43 per share, higher than the previous range of $35.36-$37.28, with the Zacks Consensus Estimate at $37.08 per share [8]. Market Sentiment - Despite the positive earnings report, estimates for the stock have trended downward over the past month, indicating a potential shift in market sentiment [9][11]. - TransDigm holds a Zacks Rank 2 (Buy), suggesting expectations for above-average returns in the coming months [11].

Core Viewpoint - TransDigm Group Inc. (TDG) presents a strong investment opportunity due to rising earnings estimates, an improving defense budget, solid solvency, and robust liquidity in the aerospace defense equipment industry [1] Growth Projections & Surprise History - The Zacks Consensus Estimate for TDG's fiscal 2025 earnings per share (EPS) has increased by 0.4% to $37.21 over the past 30 days [2] - Total revenue for fiscal 2025 is estimated at $8.87 billion, reflecting a year-over-year growth of 11.7% [2] - Long-term earnings growth for TransDigm is projected at 13.5%, with an average earnings surprise of 6.50% over the last four quarters [2] Solvency - TransDigm's times interest earned (TIE) ratio at the end of Q1 fiscal 2025 was 2.7, indicating strong capability to meet interest payment obligations in the near term [3] Liquidity - The current ratio for TransDigm at the end of Q1 fiscal 2025 was 2.70, significantly higher than the industry average of 1.42, demonstrating the company's ability to meet future short-term liabilities [4] Rising Defense Budget - The U.S. Senate Committee on Appropriations approved a Fiscal Year 2025 Defense Appropriations Act with total funding of $852.2 billion, a 3.3% increase from fiscal 2024 [5] - TransDigm's products are well-positioned in the U.S. defense aerospace market, benefiting from the expansionary budgetary policies of the U.S. administration and other developing nations [5] Stock Price Performance - Over the past month, TDG shares have increased by 3.6%, contrasting with a 1.8% decline in the industry [6]

Core Insights - Zacks Premium offers various tools to help investors make informed decisions and enhance their confidence in the stock market [1] - The Zacks Style Scores are designed to assist investors in selecting stocks with the highest potential to outperform the market within a 30-day timeframe [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score emphasizes a company's financial health and future growth potential [4] - Momentum Score helps investors capitalize on price trends and earnings outlook [5] - VGM Score combines all three styles to highlight stocks with attractive value, growth, and momentum [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify stock selection [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] - Stocks with lower ranks but high Style Scores may still face downward price pressure due to negative earnings forecasts [10] Company Spotlight: TransDigm Group - TransDigm Group is a prominent designer and supplier of aerospace components for commercial and military aircraft, with a diversified product range [11] - Currently rated 3 (Hold) by Zacks, TransDigm has a VGM Score of B and a Momentum Style Score of A [11][12] - The stock has seen a 4.6% increase over the past four weeks, with upward revisions in earnings estimates for fiscal 2025 [12] - The Zacks Consensus Estimate for TransDigm's earnings has risen by $0.08 to $37.27 per share, with an average earnings surprise of 6.5% [12]

Company Overview - TransDigm Group is a leading global designer, producer, and supplier of highly engineered aerospace components used in commercial and military aircraft [11] - The company operates through three reportable segments, showcasing a well-diversified business model [11] Investment Potential - TransDigm is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of B, indicating a solid investment potential [11] - The company is considered a top pick for growth investors, with a Growth Style Score of B, forecasting year-over-year earnings growth of 9.7% for the current fiscal year [12] - Recent upward revisions in earnings estimates by three analysts over the last 60 days have led to an increase in the Zacks Consensus Estimate by $0.08 to $37.27 per share [12] - TransDigm has an average earnings surprise of 6.5%, further enhancing its attractiveness to investors [12]

Core Insights - TransDigm Group (TDG) reported revenue of $2.01 billion for the quarter ended December 2024, marking a year-over-year increase of 12.1% and exceeding the Zacks Consensus Estimate by 0.60% [1] - The company's EPS for the same period was $7.83, up from $7.16 a year ago, representing a surprise of 4.68% over the consensus estimate of $7.48 [1] Financial Performance - Net sales to external customers in various segments showed mixed results: - Non-aviation: $33 million, a decrease of 21.4% year-over-year, below the estimated $48.40 million [4] - Airframe: $946 million, an increase of 9.7% year-over-year, slightly above the estimated $935.12 million [4] - Power & Control: $1.03 billion, a year-over-year increase of 16.1%, exceeding the estimate of $977.02 million [4] - Airframe - Commercial and non-aerospace OEM: $278 million, a 2.2% increase year-over-year, above the estimate of $276.49 million [4] - Airframe - Defense: $335 million, a significant increase of 25.9% year-over-year, surpassing the estimate of $304.38 million [4] - Power & Control - Defense: $491 million, a 19.2% increase year-over-year, exceeding the estimate of $443.58 million [4] - Power & Control - Commercial and non-aerospace aftermarket: $341 million, a 15.2% increase year-over-year, above the estimate of $333.97 million [4] - Power & Control - Commercial and non-aerospace OEM: $195 million, a 10.2% increase year-over-year, exceeding the estimate of $182.49 million [4] - Airframe - Commercial and non-aerospace aftermarket: $333 million, a 2.8% increase year-over-year, below the estimate of $352.32 million [4] EBITDA Performance - EBITDA for Power & Control was reported at $585 million, exceeding the average estimate of $535.76 million [4] - EBITDA for Non-aviation was $12 million, below the average estimate of $18.34 million [4] - EBITDA for Airframe was $516 million, surpassing the average estimate of $461.50 million [4] Stock Performance - TransDigm's shares have returned +8.1% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 TransDigm Group Incorporated (Exact name of registrant as specified in its charter) For the transition period from to Commission File Number 001-32833 Delaware (State or other jurisdiction of incorporation or organization) 41-2101738 For the quarterly period ended December 28, 2024 (I.R.S. Employer Identification No.) ☐ ...