Aerospace and defense company TransDigm (NYSE: TDG) will be reporting results this Tuesday before the bell. Here’s what to expect.
TransDigm beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $2.44 billion, up 11.5% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ organic revenue estimates.
Is TransDigm a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting TransDigm’s revenue to grow 12.6% year on year to $2.26 billion, in line with the 12.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $8.04 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. TransDigm has missed Wall Street’s revenue estimates three times over the last two years.
Looking at TransDigm’s peers in the aerospace segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Boeing delivered year-on-year revenue growth of 57.1%, beating analysts’ expectations by 6.9%, and AAR reported revenues up 15.9%, topping estimates by 4.4%. Boeing traded down 2.4% following the results while AAR was up 2.1%.
Read our full analysis of Boeing’s results here and AAR’s results here.
There has been positive sentiment among investors in the aerospace segment, with share prices up 5.1% on average over the last month. TransDigm is up 4.4% during the same time and is heading into earnings with an average analyst price target of $1,622 (compared to the current share price of $1,428).
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