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TransDigm Group Incorporated (TDG), headquartered in Cleveland, Ohio, designs, manufactures, and markets aircraft components and systems. Valued at $75.3 billion by market cap, the company provides mechanical and electromechanical actuators, power and control systems, engineered latching devices, cockpit and cabin systems, safety restraints, and testing equipment. The aerospace giant is expected to announce its fiscal first-quarter earnings for 2025 on Thursday, Feb. 13.
Ahead of the event, analysts expect TDG to report a profit of $6.65 per share on a diluted basis, unchanged from the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect TDG to report EPS of $34.18, up 7.7% from $31.74 in fiscal 2024. Its EPS is expected to rise 15.9% year over year to $39.60 in fiscal 2026.
TDG stock has outperformed the S&P 500’s ($SPX) 25% gains over the past 52 weeks, with shares up 28.5% during this period. Similarly, it outperformed the Industrial Select Sector SPDR Fund’s (XLI) 25% gains over the same time frame.
TDG’s outperformance is driven by its strategic acquisition of Raptor Scientific, a provider of engineering, testing, and measurement services, which is expected to fuel growth in the aftermarket business segment.
On Nov. 7, TDG shares closed down more than 3% after reporting its Q4 results. The company’s revenue was $2.19 billion, beating Wall Street forecasts of $2.16 billion. Its adjusted EPS of $9.83, surpassed analyst estimates of $9.24. TDG expects full-year adjusted EPS to be between $35.36 and $37.28, and expects revenue to be between $8.8 billion and $9 billion.
Analysts’ consensus opinion on TDG stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 21 analysts covering the stock, 13 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and seven give a “Hold.” TDG’s average analyst price target is $1493.90, indicating a potential upside of 10% from the current levels.
