TransDigm Group Incorporated TDG is slated to report fourth-quarter fiscal 2024 results on Nov. 7, before market open.
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TransDigm delivered a trailing four-quarter average earnings surprise of 8.46%. The improving growth trends in commercial air travel and strong defense sales are likely to have bolstered the quarterly performance.
TDG’s Power & Control Segment to Remain Robust
Strong sales from the commercial aftermarket, backed by steadily improving commercial air travel demand and the resulting higher flight hours and utilization of aircraft, are likely to have contributed favorably to revenues from the Power & Control segment. Improved sales from the commercial original equipment manufacturer (OEM) businesses, driven by continued recovery in both narrow-body and wide-body aircraft, are also expected to have bolstered this segment’s top line.
Transdigm Group Incorporated Price and EPS Surprise
Transdigm Group Incorporated price-eps-surprise | Transdigm Group Incorporated Quote
Also, an improving U.S. government defense spending trend is likely to have added an impetus to the defense part of the Power & Control segment in the fiscal fourth quarter.
The Zacks Consensus Estimate for the Power & Control segment’s fiscal fourth-quarter revenues is pegged at $1.08 billion, indicating a 17.9% improvement from the year-ago quarter’s reported figure.
TDG’s Airframe Segment Likely to Report Revenue Growth
Sales from the Airframe segment are likely to have been boosted by the strong air travel growth as well as rising demand for this unit’s defense products, backed by solid government funding support.
The Zacks Consensus Estimate for the segment’s fiscal fourth-quarter revenues is pegged at $1.02 billion, indicating 15% growth from the prior-year quarter’s reported actuals.
Q4 Estimates for TDG
Strong sales expectations from both of its primary segments, which constitute approximately 97% of TDG’s total revenues, might have bolstered its overall quarterly revenue performance. The Zacks Consensus Estimate for sales is pegged at $2.16 billion, indicating an improvement of 16.8% from the prior-year recorded number.
A strong top line is likely to have boosted TDG’s overall margin performance, thereby contributing favorably to its quarterly bottom line. Also, higher interest income might have contributed favorably to TDG’s overall earnings performance in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at $9.25 per share, indicating an increase of 15.2% from the year-ago reported figure
What the Zacks Model Unveils for TDG
Our proven model does not conclusively predict an earnings beat for TransDigm this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.
TDG’s Earnings ESP: TDG has an Earnings ESP of -2.92%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
TDG’s Zacks Rank: Currently, TDG carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here we have mentioned the following two players from the same industry that also have the right combination of elements to beat earnings in the upcoming releases.
Triumph Group, Inc. TGI is slated to report its second-quarter fiscal 2025 results on Nov. 12, before market open. It has an Earnings ESP of +9.09% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for TGI’s fiscal second-quarter earnings stands at 6 cents per share, which calls for a 500% improvement from the second-quarter fiscal 2024 reported number. The Zacks Consensus Estimate for fiscal second-quarter sales is pegged at $287.3 million.
Heico Corp. HEI is expected to report its fourth-quarter fiscal 2024 results soon. It has an Earnings ESP of +1.32% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for HEI’s fiscal fourth-quarter earnings stands at 99 cents per share, which calls for a 17.9% improvement from the fourth-quarter fiscal 2023 reported number. The Zacks Consensus Estimate for fiscal fourth-quarter sales is pegged at $1.05 billion.
Recent Defense Releases
Lockheed Martin Corporation LMT reported third-quarter 2024 adjusted earnings of $6.84 per share, which beat the Zacks Consensus Estimate of $6.47 by 5.7%. The bottom line also rose 1% from the year-ago quarter's recorded figure of $6.77.
Net sales were $17.10 billion, which missed the Zacks Consensus Estimate of $17.28 billion by 1%. The top line, however, increased 1.3% from $16.88 billion reported in the year-ago quarter.
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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
Triumph Group, Inc. (TGI) : Free Stock Analysis Report
Transdigm Group Incorporated (TDG) : Free Stock Analysis Report
Heico Corporation (HEI) : Free Stock Analysis Report
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