/Transdigm%20Group%20Incorporated%20logo%20on%20mobile-by%20madamF%20via%20Shutterstock.jpg){kind=spacer}
Ohio-based TransDigm Group Incorporated (TDG) is a leading global designer, producer, and supplier of highly engineered aircraft components for both commercial and military aircraft. Valued at $72 billion by market cap, the company’s major products include actuators, ignition systems, engine technology, pumps, etc. The company is set to announce its fiscal 2024 Q3 earnings on Tuesday, Aug. 13.
Ahead of the event, analysts expect TransDigm Group to report a profit of $7.77 per share, up 18.6% from $6.55 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in each of the last four quarters. It reported an EPS of $7.42 in the recent quarter, exceeding the consensus estimate by 9.1%, reaping the benefits of its value-driven operating strategy.
Looking ahead, analysts expect TransDigm Group to report an EPS of $30.21 in fiscal 2024, up 27.6% from $23.67 in fiscal year 2023. Moreover, its fiscal 2025 EPS is projected to rise 19.5% year over year to $36.10.
TDG stock has rallied 41.2% over the past 52 weeks, significantly outperforming the broader S&P 500 Index's ($SPX) 19.2% gains and the S&P 500 Industrial Sector SPDR’s (XLI) 12.2% returns over the same time frame.
TransDigm Group is an active acquirer, having completed 24 acquisitions. The company had a particularly active year in 2018 with four acquisitions and has maintained a steady pace, averaging nearly two acquisitions annually over the past three years, including three acquisitions in 2024. TransDigm’s acquisition strategy is geographically diverse, spanning over five countries, with a significant focus on the U.K. and the U.S., expanding and strengthening its market position and capabilities.
Moreover, on May 7, TransDigm Group reported solid Q2 earnings that significantly exceeded expectations, prompting the aerospace contractor to raise its full-year outlook. It now expects revenue between $7.7 billion and $7.8 billion and adjusted EPS between $31.75 and $33.09.
The consensus view on TransDigm Group stock is “Strong Buy” overall, a step up from a “Moderate Buy” rating of two months before. Out of 19 analysts covering the stock, 13 suggest a “Strong Buy,” one advises a “Moderate Buy,” and the remaining five analysts give a “Hold.”
Furthermore, the average analyst price target for TransDigm Group is $1,446.80, indicating a potential upside of 16.2% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
