Transdigm Group Inc Up 0.67% To $645.49 After Earnings Beat

TransDigm Group Incorporated (TDG) surpassed earnings projections on 8/9/2022 for Q3 2022.

Analyst expectations for Transdigm Group Inc earnings per share (EPS) were at $4.39, with the company surpassing those estimates with a reported EPS of $4.85, leading to a positive surprise of $0.46 per share (10%). Transdigm Group Inc's earnings rose 46% year-over-year as the firm reported an EPS of $3.33 in its year-ago quarter. The positive annual growth shows the Industrials company is performing well amid recent economic conditions.

Consensus estimates for Transdigm Group Inc revenue averaged out to $1.4 billion, with the business missing on those expectations with reported third-quarter revenue of $1.4 billion. The $2 million (0%) negative revenue surprise led to 15% growth year-over-year as the firm reported revenue of $1.2 billion in its year-ago quarter. The higher earnings growth compared to revenue points to Transdigm Group Inc improving its profit margin.

The stock is up 0.67% to $645.49 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

Trading in the five days leading up to the report earned Transdigm Group Inc a Bullish Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 71. Meanwhile, the average Wall Street analyst rated the stock a Buy.

TransDigm manufactures and services a diverse set of components for commercial and military aircraft. The firm organizes itself in three segments: a power and control segment, an airframe segment, and a small nonaviation segment. It operates as an acquisitive holding company that targets firms with proprietary, sole-source products with substantial aftermarket content. TransDigm regularly employs financial leverage to amplify operating results.