TDG Beats Estimate - Analyst Blog
February 08 2012 - 3:45AM
Zacks
TransDigm Group
Incorporated (TDG) reported first-quarter fiscal 2012
earnings per share from continuing operations of $1.15, outpacing
the Zacks Consensus Estimate of $1.11 and prior-year loss per share
of $1.19. Loss per share in first-quarter fiscal 2011 was a result
of 87 cents per share of one-time cost related to the refinancing
of the company's capital structure to fund the acquisition of
McKechnie.
Earnings in the reported quarter
was aided by increased sales, solid proprietary products of the
company, good productivity and favorable tax adjustments, partially
offset by increased interest expense.
Revenue
Net sales were $352.5 million, up
50.9% year over year. Organically, sales during the quarter
increased by approximately 18.4%, driven by increased sales in
commercial aftermarket and OEM markets and a slight improvement in
defense sales. Sales during the quarter were also aided by
acquisitions of McKechnie Aerospace, Schneller, Harco and Talley
Actuation.
Income &
Expenses
Income from operations for the
quarter was $145.3 million compared with $92.3 million in the
prior-year period. Selling and administrative expenses were $41.9
million compared with $30.5 million in the comparable quarter last
year. EBITDA for the quarter jumped to $163.0 million from $30.2
million.
Balance Sheet & Cash
Flow
Cash and cash equivalents were
$359.9 million at the end of the quarter compared with $376.3
million at the end of fiscal 2011. Long-term debt was $3.1 billion
while shareholders equity was $887.1 million at the end of the
quarter.
Net cash from operating activities
was $67.7 million in the first quarter compared with $62.1 million
in the prior-year period.
Outlook
TransDigm expects total revenue for
fiscal 2012 to be in the range of $1,470 million to $1,510 million,
up from its prior guidance range of $1,430 million to $1,470
million and earnings per share is expected to be in the range of
$5.15 to $5.49, up from its prior guidance of $4.95 to $5.27.
Adjusted earnings per share are expected to be in the range of
$5.66 to $6.00, up from its prior guidance of $5.35 to $5.67.
The company revised its guidance to
account for recent acquisition of Harco. 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 Goodrich Corp. (GR),
Honeywell International Inc. (HON) and
United Technologies Corp. (UTX).
Currently, we maintain a Zacks #3
Rank (short-term Hold recommendation) on TransDigm.
GOODRICH CORP (GR): Free Stock Analysis Report
HONEYWELL INTL (HON): Free Stock Analysis Report
TRANSDIGM GROUP (TDG): Free Stock Analysis Report
UTD TECHS CORP (UTX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Goodrich (NYSE:GR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Goodrich (NYSE:GR)
Historical Stock Chart
From Jul 2023 to Jul 2024