TDG Beats Estimate, Ups Guidance - Analyst Blog
May 09 2012 - 4:45AM
Zacks
TransDigm Group
Incorporated (TDG) reported second-quarter fiscal 2012
earnings per share from continuing operations of $1.51, outpacing
the Zacks Consensus Estimate of $1.30 and prior-year earnings per
share of 69 cents.
Revenue
Net sales were $423.5 million, up
39.2% year over year. Organically, sales during the quarter surged
approximately 14.9%, driven by increased sales in commercial OEM
markets and aided by acquisitions of Schneller, Harco and
Amsafe.
Income &
Expenses
Income from operations for the
quarter was $177.2 million compared with $113.2 million in the
prior-year period. Selling and administrative expenses were $49.5
million compared with $33.2 million in the comparable quarter last
year. EBITDA for the quarter jumped $192.5 million from $128.3
million.
Balance Sheet & Cash
Flow
Cash and cash equivalents were
$201.5 million at the end of the quarter compared with $376.2
million at the end of fiscal 2011. Long-term debt was $3.6 billion
while shareholders equity was $994.9 million at the end of the
quarter.
Net cash from operating activities
was $164.8 million in the quarter compared with $129.2 million in
the prior-year period.
Outlook
Driven by the robust performance in
the second quarter, the company raised its full year 2012 guidance.
TransDigm expects its total revenue for fiscal 2012 to be in the
range of $1,670 million to $1,698 million, up from its prior
guidance range of $1,470 million to $1,510 million. Further,
earnings per share are expected to be in the range of $5.47 to
$5.82, up from its prior guidance of $5.15 to $5.49. Adjusted
earnings per share are expected to be in the range of $6.23 to
$6.57, up from its prior guidance range of $5.66 to $6.00.
The company revised its guidance to
account for the recent acquisition of AmSafe and good performance
in the first half of the year. 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).
We continue to maintain an
Outperform rating on TranDigm for the long term. The company has a
Zacks #1 Rank (Strong-Buy recommendation) over the next
one-to-three months.
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
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