TransDigm Group Incorporated
) reported second-quarter fiscal 2012 earnings per share from
continuing operations of $1.51, outpacing the Zacks Consensus
Estimate of $1.30 and prior-year earnings per share of 69
Net sales were $423.5 million, up 39.2% year over year.
Organically, sales during the quarter surged approximately 14.9%,
driven by increased sales in commercial OEM markets and aided by
acquisitions of Schneller, Harco and Amsafe.
Income & Expenses
Income from operations for the quarter was $177.2 million
compared with $113.2 million in the prior-year period. Selling and
administrative expenses were $49.5 million compared with $33.2
million in the comparable quarter last year. EBITDA for the quarter
jumped $192.5 million from $128.3 million.
Balance Sheet & Cash Flow
Cash and cash equivalents were $201.5 million at the end of the
quarter compared with $376.2 million at the end of fiscal 2011.
Long-term debt was $3.6 billion while shareholders equity was
$994.9 million at the end of the quarter.
Net cash from operating activities was $164.8 million in the
quarter compared with $129.2 million in the prior-year period.
Driven by the robust performance in the second quarter, the
company raised its full year 2012 guidance. TransDigm expects its
total revenue for fiscal 2012 to be in the range of $1,670 million
to $1,698 million, up from its prior guidance range of $1,470
million to $1,510 million. Further, earnings per share are expected
to be in the range of $5.47 to $5.82, up from its prior guidance of
$5.15 to $5.49. Adjusted earnings per share are expected to be in
the range of $6.23 to $6.57, up from its prior guidance range of
$5.66 to $6.00.
The company revised its guidance to account for the recent
acquisition of AmSafe and good performance in the first half of the
year. However, 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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