TransDigm Group Preps for Earnings Reveal: What Analysts Expect
TransDigm Group Incorporated (TDG), based in Cleveland, Ohio, specializes in designing and manufacturing vital aircraft components. With a market cap of $75.3 billion, the company supplies an array of products, including mechanical and electromechanical actuators, power control systems, cockpit systems, and safety restraints. Investors are eagerly awaiting the company’s fiscal first-quarter earnings release scheduled for Thursday, February 13.
Ahead of the earnings announcement, analysts predict that TDG will report earnings of $6.65 per share on a diluted basis, matching the results from the same quarter last year. Notably, the company has a history of exceeding Wall Street’s earnings-per-share (EPS) estimates in its previous four quarterly reports.
Full-Year Projections Show Promising Growth
For the entire fiscal year, analysts forecast an EPS of $34.18, reflecting a 7.7% increase from $31.74 in fiscal 2024. Looking ahead, EPS is expected to rise by 15.9%, reaching $39.60 in fiscal 2026.
TDG Stock Outshines Market Benchmarks
In the last 52 weeks, TDG stock has outpaced the S&P 500’s growth of 25%, showing an increase of 28.5%. Similarly, it outperformed the Industrial Select Sector SPDR Fund (XLI), which also gained 25% in the same period.
Strategic Acquisition Drives Growth
This impressive performance can be attributed to TDG’s strategic acquisition of Raptor Scientific, a firm specializing in engineering, testing, and measurement services, which is expected to enhance growth in its aftermarket business segment.
On November 7, TDG shares fell by more than 3% despite positive Q4 results. The company reported revenue of $2.19 billion, surpassing Wall Street’s forecast of $2.16 billion. Adjusted EPS came in at $9.83, exceeding analyst expectations of $9.24. For the year ahead, TDG projects adjusted EPS between $35.36 and $37.28, with revenue anticipated between $8.8 billion and $9 billion.
Analysts Maintain Positive Outlook
Overall, the consensus regarding TDG stock is moderately bullish, with an overall “Moderate Buy” rating. Out of 21 analysts monitoring the stock, 13 recommend a “Strong Buy,” one suggests a “Moderate Buy,” and seven opt for a “Hold.” The average analyst price target stands at $1,493.90, indicating a potential upside of approximately 10% from current prices.
On the date of publication, Neha Panjwani did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and statistics provided here are for informational purposes only. For further details, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
