Aerospace and defense company TransDigm (NYSE:TDG) will be reporting results this Wednesday before the bell. Here’s what to look for.
TransDigm missed analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $2.24 billion, up 9.3% year on year. It was a slower quarter for the company, with a significant miss of analysts’ 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, analysts are expecting TransDigm’s revenue to grow 9.8% year on year to $2.4 billion, slowing from the 18% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $10.06 per share.
Analysts covering the company have generally 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 three times over the last two years.
Looking at TransDigm’s peers in the aerospace segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Howmet delivered year-on-year revenue growth of 13.8%, beating analysts’ expectations by 2.3%, and Astronics reported revenues up 3.8%, in line with consensus estimates. Howmet traded up 1.1% following the results while Astronics was down 1.1%.
Read our full analysis of Howmet’s results here and Astronics’s results here.
Investors in the aerospace segment have had steady hands going into earnings, with share prices flat over the last month. TransDigm’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $1,558 (compared to the current share price of $1,289).
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