Yahoo Finance TransDigm (TDG) Q2 Earnings Beat Estimates, Sales Up Y/Y
TransDigm Group Incorporated TDG reported second-quarter fiscal 2020 adjusted earnings of $5.10 per share, which surpassed the Zacks Consensus Estimate of $3.83 by 33.1%. Moreover, the bottom line increased 22.6% from $4.16 registered a year ago.
Barring one-time items, the company reported GAAP earnings of $5.63 per share compared with $3.56 in the year-ago quarter.
Sales
Net sales amounted to $1,443 million, reflecting growth of 23.5% from $1,168 million in the prior-year quarter. The reported figure also outpaced the Zacks Consensus Estimate of $1,429 million by 1%. Meanwhile, organic sales grew 4.8%.
Operating Results
Net income from continuing operations for the quarter increased 61.5% to $323 million compared with $200 million in the comparable quarter a year ago.
The effective tax rate was 4.2% compared with 24.2% for the comparable period in fiscal 2019.
Transdigm Group Incorporated Price, Consensus and EPS Surprise
Transdigm Group Incorporated price-consensus-eps-surprise-chart | Transdigm Group Incorporated Quote
Financial Position
TransDigm ended the second quarter of fiscal 2020 with cash and cash equivalents of $2,668 million, up from $1,467 million as of Sep 30, 2019. At the end of the reported quarter, the company’s long-term debt summed $17.93 billion, up from $16.47 billion as of Sep 30, 2019.
Cash from operating activities amounted to $594 million, as of Mar 28, 2020, compared with $453 million, as of Mar 30, 2019.
Fiscal 2020 Outlook
On Apr 2, 2020, the company withdrew its previously-provided financial guidance for the fiscal year ending Sep 30, 2020, due to the uncertainties concerning the ultimate impact of COVID-19 on the global market and economy.
Zacks Rank
Transdigm currently carries a Zacks Rank #5 (Strong Sell).
Recent Defense Releases
Lockheed Martin Corp. LMT, a Zacks Rank #3 (Hold) company, reported first-quarter 2020 earnings of $6.08 per share, which surpassed the Zacks Consensus Estimate of $5.76 by 5.5%. The bottom line also improved 1.5% from the year-ago quarter’s $5.99. You can see the complete list of today’s Zacks #1 Rank stocks here.
General Dynamics Corporation GD, a Zacks Rank #3 company, reported first-quarter 2020 earnings from continuing operations of $2.43 per share, which missed the Zacks Consensus Estimate of $2.46 by 1.2%. Moreover, earnings declined 5.1% from $2.56 in the year-ago quarter.
Teledyne Technologies Inc. TDY, a Zacks Rank #3 company, reported first-quarter 2020 earnings of $2.28 per share, which surpassed the Zacks Consensus Estimate of $2.10 by 8.6%. The bottom line also improved 12.9% from the year-ago quarter’s $2.02.
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