TransDigm Group’s Quarterly Earnings Preview: What You Need to Know

Company Overview - TransDigm Group Incorporated (TDG) has a market cap of $74.1 billion and specializes in engineered aircraft components for both commercial and military aircraft [1] - The company was founded in 1993 and is headquartered in Cleveland, Ohio, focusing on proprietary parts such as control systems, pumps, valves, and cockpit instruments [1] Earnings Projections - For fiscal Q4 2025, analysts project an EPS of $9.62, reflecting a 4.7% increase from $9.19 in the same quarter last year [2] - For fiscal 2025, EPS is expected to be $34.49, an 8.7% rise from $31.74 in fiscal 2024, with further growth anticipated to $37.91 in fiscal 2026, representing a 9.9% annual increase [3] Stock Performance - Over the past 52 weeks, TDG stock has slightly declined, underperforming the S&P 500 Index's 16.2% return and the Industrial Select Sector SPDR Fund's 13.2% gain [4] - On October 15, shares dropped 4.4% after Morgan Stanley lowered its price target to $1,600 from $1,750, citing increased debt and interest expenses, but maintained an "Overweight" rating with a potential upside of 21.9% [5] Analyst Ratings - The consensus view on TransDigm stock is bullish, with a "Strong Buy" rating from 16 out of 22 analysts, while 6 analysts suggest a "Hold" rating [6] - The mean price target of $1,555.10 indicates a premium of 15.2% from current price levels [6]