TransDigm (TDG) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - TransDigm Group reported a revenue of $2.05 billion for the quarter ended June 2024, reflecting a year-over-year increase of 17.3% and surpassing the Zacks Consensus Estimate by 2.59% [1] - The earnings per share (EPS) for the quarter was $9.00, up from $7.25 in the same quarter last year, exceeding the consensus EPS estimate by 6.51% [1] Revenue Performance - Net sales to external customers in the Non-aviation segment were $49 million, slightly below the average estimate of $50.52 million, marking a year-over-year increase of 2.1% [3] - Airframe segment net sales reached $974 million, exceeding the estimated $934.67 million, with a year-over-year growth of 16.7% [4] - Power & Control segment net sales were $1.02 billion, surpassing the estimated $991.78 million, reflecting an 18.8% increase year-over-year [5] - Airframe-Commercial and non-aerospace OEM net sales were $323 million, above the average estimate of $300.65 million, showing a 27.2% year-over-year increase [6] - Airframe-Defense segment net sales were $303 million, exceeding the average estimate of $291.45 million, with a 10.6% year-over-year change [7] - Power & Control-Defense net sales were $477 million, surpassing the estimated $457.21 million, representing a 16.3% year-over-year increase [8] - Power & Control-Commercial and non-aerospace aftermarket net sales were $317 million, slightly below the average estimate of $327.11 million, with a 16.5% year-over-year change [9] - Power & Control-Commercial and non-aerospace OEM net sales were $229 million, exceeding the average estimate of $212.36 million, reflecting a 27.9% year-over-year increase [10] - Airframe-Commercial and non-aerospace aftermarket net sales were $348 million, above the average estimate of $337.41 million, with a 13.4% year-over-year change [11] EBITDA Performance - EBITDA for the Power & Control segment was $587 million, exceeding the average estimate of $552.25 million [12] - Unallocated corporate expenses resulted in an EBITDA of -$21 million, closely aligning with the estimated -$21.13 million [13] - Non-aviation EBITDA was reported at $22 million, surpassing the average estimate of $20.31 million [14] Stock Performance - TransDigm shares have returned -2.6% over the past month, compared to a -5.9% change in the Zacks S&P 500 composite [14] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [14]