TransDigm Group Inc.
) is slated to release its second-quarter fiscal 2012 earnings
result on Tuesday, May 8, 2012. The current Zacks Consensus
Estimate for second-quarter earnings per share (EPS) is $1.30,
representing annualized growth of 38.71%.
TransDigm's earnings were above the Zacks Consensus Estimate in
the last four quarters, with an average positive earnings surprise
of 16.39% for the trailing four quarters.
First Quarter Fiscal 2012 Highlights
The company's first-quarter fiscal 2012 earnings per share from
continuing operations of $1.15 outpaced the Zacks Consensus
Estimate of $1.11 and prior-year loss per share of $1.19. Earnings
in the reported quarter were aided by increased sales, solid
proprietary products of the company, good productivity and
favorable tax adjustments, partially offset by increased interest
Net sales were $352.5 million, up 50.9% year over year.
Organically, sales during the quarter rose by approximately 18.4%,
driven by increased sales in commercial aftermarket and OEM markets
and a slight improvement in defense sales. Sales during the quarter
were also aided by acquisitions of McKechnie Aerospace, Schneller,
Harco and Talley Actuation.
Agreement of Estimate Revisions
None of the analysts have increased or decreased their estimates
in the last 7 days. Moreover, there was no decrease in the last 30
days. However, for second-quarter 2012, third-quarter 2012 and
full-year 2012, one analysts each have increased their estimates in
the last 30 days.
Magnitude of Estimate Revisions
In the last 7 days, there was no change in earnings estimate for
the second-quarter 2012, third-quarter 2012, full-year fiscal 2012
or fiscal 2013. However, in the last 30 days, earnings estimates
for the third quarter were increased from $1.47 to $1.48 and for
fiscal 2012 increased from $5.51 to $5.54.
The company is deriving significant benefits from its Harco
acquisition, the main reason behind why it had increased its
guidance for 2012. TransDigm expects total revenue for fiscal 2012
to be in the range of $1,470 million to $1,510 million, and
earnings per share expected in the range of $5.15 to $5.49.
However, an uncertain aerospace market and worldwide economic
environment remain a matter of concern.
Based in Cleveland, Ohio, TransDigm Group Inc. designs,
produces and supplies engineered aircraft components for use on
commercial and military aircraft. The company operates principally
in the US. Major competitors of the company are
Honeywell International Inc.
United Technologies Corp.
We continue to maintain an Outperform rating on TranDigm for the
long term. The company has a Zacks #1 Rank (Strong Buy
recommendation) over the next one-to-three months.
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