Will Growing Air Travel Boost TransDigm’s (TDG) Q1 Results?


TransDigm Group Integrated TDG is slated to report first-quarter fiscal 2024 outcomes on Feb 8, earlier than market open.

TransDigm delivered a four-quarter common earnings shock of 9.20%. The restoration within the business aerospace market and robust protection gross sales are prone to have bolstered TDG’s fiscal first-quarter outcomes.

Energy & Management Phase to Stay Strong

Sturdy gross sales from the business aftermarket in addition to business authentic tools producer (OEM) companies, backed by continued restoration in business air journey demand and the ensuing increased flight hours and utilization of plane, will need to have bolstered revenues for the Energy & Management section.

Additionally, strong protection spending from the U.S. authorities has been bolstering TDG’s protection enterprise’ gross sales, which, in flip, can be prone to have aided this section’s income efficiency within the fiscal first quarter.

The Zacks Consensus Estimate for the Energy & Management section’s fiscal first-quarter revenues is pegged at $813.6 million, indicating a 12.2% enchancment from the year-ago quarter’s reported determine.

Airframe Phase to Enhance Revenues

Gross sales from the Airframe section are prone to have been boosted by the robust air journey progress that’s driving the demand for narrow-body and wide-body plane. Constructive synergies from the Calspan and Dart acquisitions might need additionally benefited this section’s top-line efficiency.

The Zacks Consensus Estimate for the section’s fiscal first-quarter revenues is pegged at $824.9 million, indicating 29.5% progress from the prior-year quarter’s reported actuals.

This autumn Estimates

Sturdy gross sales expectations from each of its main segments, which represent roughly 97% of TDG’s whole revenues, will need to have bolstered its total income efficiency within the fiscal first quarter. The Zacks Consensus Estimate for gross sales is pegged at $1.67 billion, indicating an enchancment of 19.6% from the prior-year recorded quantity.

A robust prime line is prone to have boosted TDG’s total margin efficiency, thus contributing to its quarterly backside line. The Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at $6.37 per share, indicating a rise of 39.1% from the year-ago reported determine.

What the Zacks Mannequin Unveils

Our confirmed mannequin doesn’t conclusively predict an earnings beat for TransDigm this time round. The mixture of a constructive Earnings ESP and a Zacks Rank #1 (Sturdy Purchase), 2 (Purchase) or 3 (Maintain) will increase the possibilities of an earnings beat, which isn’t the case right here.

Earnings ESP: The corporate’s Earnings ESP is -3.44%. You’ll be able to uncover one of the best shares to purchase or promote earlier than they’re reported with our Earnings ESP Filter.

Zacks Rank: TransDigm carries a Zacks Rank #3 at current. You’ll be able to see the complete list of today’s Zacks #1 Rank stocks here.

Shares to Take into account

Under are three protection shares which have the precise mixture of components to publish an earnings beat this reporting cycle.

CAE Inc. CAE is slated to launch third-quarter fiscal 2024 outcomes on Feb 14. CAE has an Earnings ESP of +6.32% and a Zacks Rank #3 at current.

CAE delivered a four-quarter common earnings shock of 15.97%. The consensus estimate for fiscal third-quarter earnings is pegged at 18 cents per share, whereas that for gross sales is pinned at $806 million.

Leidos LDOS is scheduled to launch fourth-quarter outcomes on Feb 13. LDOS has an Earnings ESP of +1.88% and a Zacks Rank #2 at current.

Leidos delivered a four-quarter common earnings shock of 11.51%. The Zacks Consensus Estimate for LDOS’ fourth-quarter earnings is pegged at $1.73 per share, whereas that for gross sales is pinned at $3.79 billion.

Triumph Group TGI is slated to launch third-quarter fiscal 2024 outcomes on Feb 7. TGI has an Earnings ESP of +13.64% and a Zacks Rank #2 at current.

Triumph Group boasts a long-term earnings progress fee of two.6%. The Zacks Consensus Estimate for TGI’s fourth-quarter earnings is pegged at 13 cents per share, whereas that for gross sales is pinned at $366.3 million.

Keep on prime of upcoming earnings bulletins with the Zacks Earnings Calendar.

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