TransDigm Group Incorporated
) reported strong first-quarter fiscal 2014 results on Feb 4,
2014, after which the stock gained 0.9% on Feb 5 and 0.2% on Feb
6, 2014. Following the earnings results, although the estimates
for fiscal 2014 contracted 1.7%, the estimates for fiscal 2015
surged 4.0%. First-quarter results were primarily driven by the
company's strategic acquisitions in fiscal 2013, improving
commercial aftermarket and strength in commercial aerospace.
This maker of components for commercial and military aircrafts
reported adjusted earnings per share of $1.66, which comfortably
surpassed the Zacks Consensus Estimate of $1.28, by 29.7%. The
10% per share increase was lower than the 15.2% increase of
adjusted net income, primarily due to the higher share count in
On GAAP basis, net income increased 16.1% year over year to
$86.1 million, while GAAP earnings were reported at $1.44 cents
per share, up from 66 cents per share in the prior-year
Net sales in the quarter totaled $529.3 million, representing
a year-over-year increase of 23.0%. Organic net sales growth was
up 9.1% from the prior-year period, driven by contribution from
acquisitions of Aerosonic and Arkwin, while Whippany Actuation
contributed the balance increase to the top line. Revenues also
surpassed the Zacks Consensus Estimate of $507 million.
TransDigm reported adjusted earnings before interest, taxes,
depreciation and amortization (EBITDA) for the quarter at $243.6
million, which increased 21.2% from $200.9 million in the
EBITDA before adjustments grew 23.2% to $234.5 million versus
$190.3 million in the comparable prior-year quarter.
Balance Sheet and Cash Flow
Exiting the first quarter, the company had cash from operating
activities of $115.7 million, while it had cash and cash
equivalents of $410.9 million. The company has a long term debt
of $5.7 billion.
TransDigm expects to reap positive synergies from its three
recent acquisitions and to specially highlight the benefits of
the Airborne Systems acquisition, it has raised its outlook for
fiscal 2014. The company now expects net sales to be in the range
of $2.28 billion to $2.34 billion compared with a guidance of
$2.1-$2.2 billion provided earlier.
TransDigm expects fiscal 2014 net income to be in the range of
$375 million to $393 million versus the earlier range of
Adjusted earnings per share are expected to be in the range of
$7.35 a share to $7.65 a share, compared with the previous
guidance of $7.00 to $7.32.
Adjusted EBITDA is expected to be in the range of $1,036
million to $1,064 million, versus the previous range of $1,004
million to $1,032 million.
TransDigm currently holds a Zacks Rank #2 (Buy). Some other
stocks that are worth considering and carry a Zacks Rank #1
(Strong Buy) in the Aerospace sector include
Alliant Techsystems Inc
BAE Systems plc
Spirit AeroSystems Holdings, Inc.
ALLIANT TECHSYS (ATK): Free Stock Analysis
BAE SYSTEMS-ADR (BAESY): Get Free Report
SPIRIT AEROSYS (SPR): Free Stock Analysis
TRANSDIGM GROUP (TDG): Free Stock Analysis
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