TransDigm tops Q4 revenue, adjusted profit estimates
Overview
US aircraft components maker's fiscal Q4 revenue rose 23% yr/yr, beating analyst expectations
Adjusted net income and adjusted EPS exceeded analyst expectations
Company repurchased $943 mln in shares during the quarter
Outlook
TransDigm expects fiscal 2027 net sales of $11.95 bln to $12.15 bln, up 14% yr/yr at midpoint
Fiscal 2027 EPS expected to be $42.06 to $42.91, up 17% at midpoint
Company guides fiscal 2027 EBITDA As Defined to $6.2 bln-$6.35 bln, up 13% at midpoint, with margin of about 52%
Result Drivers
ORGANIC GROWTH - Co said Q4 net sales rose 23% yr/yr, with 14% organic growth
HIGHER INTEREST AND TAXES - Co said higher interest and tax expense weighed on net income, partly offset by sales growth
ACQUISITION IMPACT - Co said recent acquisitions diluted EBITDA margin by about two percentage points
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $2.99 bln | $2.95 bln (19 Analysts) |
Q4 Adjusted EPS | Beat | $12.44 | $12.32 (20 Analysts) |
Q4 EPS | $10.33 | ||
Q4 Adjusted Net Income | Beat | $706 mln | $694.05 mln (16 Analysts) |
Q4 Organic Growth | 14.00% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 12 "hold" and 1 "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 Incorporated is $1,454.23, about 19.3% above its November 9 closing price of $1,218.85
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 28 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)