Yahoo Finance TransDigm's (TDG) Q2 Earnings Beat Estimates, Sales Down Y/Y
TransDigm Group Incorporated TDG reported second-quarter fiscal 2021 adjusted earnings of $2.58 per share, which surpassed the Zacks Consensus Estimate of $2.52 by 2.4%. However, the bottom line declined 49.4% from $5.10 reported a year ago.
Barring one-time items, the company reported GAAP earnings of $1.79 per share compared with $5.56 in the year-ago quarter.
Sales
Net sales amounted to $1,194 million, declining 17.3% from $1,443 million in the prior-year quarter. The reported figure, however, outpaced the Zacks Consensus Estimate of $1,180 million by 1.2%.
Operating Results
Net income from continuing operations for the quarter plunged 67.5% to $105 million compared with $323 million in the comparable quarter a year ago. The decrease in income from continuing operations primarily reflects the decline in net sales.
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 2021 with cash and cash equivalents of $4,072 million, down from $4,717 million as of Sep 30, 2020.
At the end of the reported quarter, the company’s long-term debt summed $19.40 billion, up from $19.38 billion as of Sep 30, 2020.
Cash from operating activities amounted to $372 million as of Apr 3, 2021, compared with $594 million as of Mar 28, 2020.
Fiscal 2021 Outlook
Given the considerable uncertainty concerning the extent and duration of business disruptions stemming from the COVID-19 pandemic and how it will impact operations further, TransDigm kept its previously provided fiscal 2021 guidance suspended.
Zacks Rank
TransDigm currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Lockheed Martin Corp. LMT reported first-quarter 2021 earnings of $6.56 per share, which surpassed the Zacks Consensus Estimate of $6.32 by 3.8%.
Hexcel Corporation HXL reported first-quarter 2021 loss of 10 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 16 cents.
Raytheon Technologies Corporation’s RTX first-quarter 2021 adjusted earnings per share of 90 cents outpaced the Zacks Consensus Estimate of 88 cents by 2.3%.
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