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Ohio-based TransDigm Group Incorporated (TDG) designs, produces, and supplies component parts, systems, and subsystems that are critical for the safe and effective operation of both commercial and military aircraft. Valued at a market cap of $75.1 billion, the company is expected to announce its fiscal Q4 earnings results before the market opens on Thursday, Nov. 7.
Ahead of this event, analysts project the aerospace company to report a profit of $8.64 per share, up nearly 12.7% from $7.67 per share in the year-ago quarter. The company has consistently beaten Wall Street's bottom-line estimates in each of the last four quarters. The company’s adjusted earnings of $9 per share in the last quarter outpaced the consensus estimates of $8.45 per share and delivered a notable 24.1% year-over-year growth.
The strong results can be primarily attributed to the application of its value-driven operating strategy and improvement in sales. For fiscal 2024, analysts expect TDG to report an EPS of $30.71, up 29.7% from $23.67 in fiscal 2023. Furthermore, in fiscal 2026, EPS is projected to grow 19.1% year-over-year to $36.58.
On a YTD basis, shares of TDG rallied nearly 32.1%, outpacing both the S&P 500 Index's ($SPX) 22.3% rise and the Industrial Select Sector SPDR Fund’s (XLI) 18.5% return over the same period.
On Aug. 6, shares of TDG closed up 2.3% after its better-than-expected Q3 earnings release. Along with its adjusted EPS, its revenue of $2.05 billion surpassed the Wall Street estimates of $1.99 billion and climbed 17% from a year ago. The company’s raised full-year 2024 revenue and net income guidance, noting its continued strong performance and recent acquisitions of SEI Industries, the CPI Electron Device Business, and Raptor Scientific, might have further contributed to its upward price movement.
Wall Street analysts are highly optimistic about TransDigm’s stock, with a "Strong Buy" rating overall. Among 21 analysts covering the stock, 15 recommend a "Strong Buy," one suggests a "Moderate Buy," and five indicate a “Hold” rating. This configuration is slightly more bullish than three months ago, with 14 analysts suggesting a "Strong Buy."
The average analyst price target for TDG is $1,504, indicating a 12.6% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
