Aircraft component maker TransDigm's Q3 revenue misses expectations
Overview
TransDigm fiscal Q3 revenue rises 9% but missed analyst expectations, per LSEG data
Adjusted EPS for fiscal Q3 up 7% but missed analyst expectations, per LSEG data
Co announces acquisitions of Servotronics and Simmonds, deploying over $900 mln in capital
Outlook
TransDigm lowers fiscal 2025 sales guidance by $60 mln
Company raises fiscal 2025 EBITDA guidance midpoint by $40 mln
TransDigm expects fiscal 2025 EPS between $32.39 and $33.21
Company anticipates fiscal 2025 sales between $8,760 mln and $8,820 mln
Result Drivers
COMMERCIAL AFTERMARKET - Growth moderated but still performed well, contributing to overall sales increase
OEM MARKET CHALLENGES - Sales fell short due to lower build rates and inventory destocking, impacting expectations
OPERATING STRATEGY - Value-driven strategy and lower refinancing costs boosted net income, despite higher interest expenses
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $2.24 bln | $2.29 bln (17 Analysts) |
Q3 Adjusted EPS | Miss | $9.6 | $9.97 (20 Analysts) |
Q3 EPS |
| $8.47 |
|
Q3 Adjusted Net Income | Miss | $558 mln | $568.50 mln (13 Analysts) |
Q3 EBITDA |
| $1.22 bln |
|
Q3 Organic Growth |
| 6.3% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for TransDigm Group Inc is $1,700.00, about 5.4% above its August 4 closing price of $1,608.98
The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 35 three months ago
Press Release: ID:nPn42sflma
