TransDigm's (TDG) Q1 Earnings Impressive, Revenues Beat
Zacks Investment Research | Feb 05, 2018 09:52PM ET
TransDigm Group Incorporated (NYSE:TDG) reported first-quarter fiscal 2018 adjusted earnings of $5.58 per share, which reflected growth of a whopping 121.4% year over year. The bottom line gained from the favorable impact of the recent tax reforms.
Decent top-line growth and improvements in the operating margin also drove earnings. In addition, continued efforts to boost productivity, lower refinancing costs as well as lower acquisition-related costs proved conducive to earnings growth. This was partially offset by higher interest outlay.
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Net sales for the reported quarter amounted to $848 million, reflecting year-over-year growth of 4.2%. However, the top line missed the Zacks Consensus Estimate of $862 million.
Decent growth in Commercial Aftermarket (up 10% year over year) revenues supplemented the top-line performance. Furthermore, contributions from the previously-completed acquisitions boosted the overall sales performance during the fiscal first quarter. TransDigm’s commercial aftermarket transport business witnessed solid year-over-year revenue growth. However, Defense and Commercial OEM remained flat year over year.
TransDigm’s EBITDA (earnings before interest, taxes, depreciation and amortization) grew 18.4% year over year to $382.5 million.
Transdigm Group Incorporated Price, Consensus and EPS Surprise
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