Earnings Alerts

Transdigm Group (TDG) Earnings: FY Adjusted EPS Forecast Raised Following Strong Q1 Results

By February 4, 2025 No Comments
  • TransDigm increased its full-year adjusted EPS forecast to a range of $35.51 to $37.43, up from the previous range of $35.36 to $37.28.
  • The company maintains its net sales forecast between $8.75 billion and $8.95 billion, aligning with the estimated $8.91 billion.
  • EBITDA projections remain unchanged, ranging from $4.62 billion to $4.76 billion, with an estimate at $4.72 billion.
  • In the first quarter, adjusted EPS reached $7.83, surpassing the prior year’s $7.16, and exceeded the estimate of $7.67.
  • Net sales for the first quarter were $2.01 billion, marking a 12% year-over-year increase, slightly below the estimated $2.02 billion.
  • EBITDA for the first quarter stood at $1.09 billion, a 27% year-over-year increase, significantly exceeding the $990.2 million estimate.
  • Operating income for the first quarter was $974 million, achieving a 24% year-over-year rise, surpassing the $903.6 million estimate.
  • Pretax profit from continuing operations was $619 million, well above the $508 million estimate.
  • The company noted strong first-quarter performance, driven by growth in the commercial aftermarket and defense markets.
  • Market analysts have given 15 buy ratings, 9 hold ratings, and no sell ratings for TransDigm.

Transdigm Group on Smartkarma

Analysts from Baptista Research have been closely examining TransDigm Group, a leading aerospace components manufacturer, on Smartkarma. In their recent reports, including “TransDigm Group: An Insight Into Its Commercial Aftermarket Growth and Strategy! – Major Drivers,” Baptista Research highlights the company’s strong Q4 2024 financial results despite macroeconomic challenges. They emphasize TransDigm’s success in maintaining high aftermarket margins through unique products, driving its earnings. The analysts are evaluating various factors influencing the company’s stock price and conducting an independent valuation using a Discounted Cash Flow (DCF) methodology.

In another report titled “TransDigm Group Incorporated: Will The Acquisition of CPI’s Electron Device Business Be A Game Changer? – Major Drivers,” Baptista Research delves into TransDigm’s performance and strategies following the acquisition. Despite facing industry-wide hurdles, especially in the aerospace sector, TransDigm’s focus on aftermarket services and mergers and acquisitions showcases its resilience. The analysts are conducting a thorough analysis to understand how these dynamics could impact the company’s valuation and stock performance in the near term.


A look at Transdigm Group Smart Scores

FactorScoreMagnitude
Value0
Dividend1
Growth4
Resilience5
Momentum3
OVERALL SMART SCORE2.6

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

Transdigm Group, a company specializing in manufacturing aircraft components, has received a positive overall outlook based on Smartkarma’s Smart Scores. With a strong focus on growth and resilience, Transdigm Group has scored highly in these areas, indicating a promising long-term outlook. The company’s commitment to innovation and adaptability positions it well for future success in the aerospace industry.

While Transdigm Group may not score as high on factors like value and dividend, its impressive scores in growth and resilience showcase its potential for sustained performance and market competitiveness. The company’s diverse product range, including ignition systems, gear pumps, and cockpit security devices, reflects its solid foundation within the aviation sector. Investors may find Transdigm Group an attractive prospect for long-term investment opportunities considering its robust Smart Scores in critical areas.


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.
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