The upcoming report from TransDigm Group (TDG) is expected to reveal quarterly earnings of $7.48 per share, indicating an increase of 4.5% compared to the year-ago period. Analysts forecast revenues of $1.99 billion, representing an increase of 11.5% year over year.
Over the last 30 days, there has been a downward revision of 0.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
In light of this perspective, let's dive into the average estimates of certain TransDigm metrics that are commonly tracked and forecasted by Wall Street analysts.
The average prediction of analysts places 'Net sales to external customers- Non-aviation' at $48.40 million. The estimate indicates a year-over-year change of +15.3%.
Based on the collective assessment of analysts, 'Net sales to external customers- Airframe' should arrive at $935.12 million. The estimate points to a change of +8.5% from the year-ago quarter.
The consensus among analysts is that 'Net sales to external customers- Power & Control' will reach $977.02 million. The estimate indicates a change of +10.4% from the prior-year quarter.
The consensus estimate for 'Net sales to external customers- Airframe- Commercial and non-aerospace OEM' stands at $276.49 million. The estimate indicates a year-over-year change of +1.7%.
Analysts forecast 'Net sales to external customers- Airframe- Defense' to reach $304.38 million. The estimate points to a change of +14.4% from the year-ago quarter.
Analysts predict that the 'Net sales to external customers- Power & Control- Defense' will reach $443.58 million. The estimate indicates a change of +7.7% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Net sales to external customers- Power & Control- Commercial and non-aerospace aftermarket' of $333.97 million. The estimate indicates a year-over-year change of +12.8%.
Analysts expect 'Net sales to external customers- Power & Control- Commercial and non-aerospace OEM' to come in at $182.49 million. The estimate points to a change of +3.1% from the year-ago quarter.
Analysts' assessment points toward 'Net sales to external customers- Airframe- Commercial and non-aerospace aftermarket' reaching $352.32 million. The estimate points to a change of +8.7% from the year-ago quarter.
It is projected by analysts that the 'EBITDA- Power & Control' will reach $535.76 million. The estimate compares to the year-ago value of $509 million.
The combined assessment of analysts suggests that 'EBITDA- Non-aviation' will likely reach $18.34 million. Compared to the present estimate, the company reported $17 million in the same quarter last year.
According to the collective judgment of analysts, 'EBITDA- Airframe' should come in at $461.50 million. Compared to the present estimate, the company reported $431 million in the same quarter last year.
View all Key Company Metrics for TransDigm here>>>
Over the past month, shares of TransDigm have returned +8.8% versus the Zacks S&P 500 composite's +2.9% change. Currently, TDG carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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