Aerospace and defense company TransDigm (NYSE: TDG) will be reporting earnings this Tuesday before market hours. Here’s what to look for.
TransDigm beat analysts’ revenue expectations last quarter, reporting revenues of $2.29 billion, up 13.9% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ organic revenue estimates.
Is TransDigm a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting TransDigm’s revenue to grow 14.5% year on year, improving from the 12% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. TransDigm has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at TransDigm’s peers in the aerospace segment, some have already reported their Q1 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 24.6%, beating analysts’ expectations by 4.1%, and Boeing reported revenues up 14%, topping estimates by 2.9%. AAR traded up 9.9% following the results while Boeing was also up 6.8%.
Read our full analysis of AAR’s results here and Boeing’s results here.
There has been positive sentiment among investors in the aerospace segment, with share prices up 9.4% on average over the last month. TransDigm is down 2.8% during the same time and is heading into earnings with an average analyst price target of $1,537 (compared to the current share price of $1,156).
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