NYSE$TDG

Transdigm Group Incorporated · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Transdigm's Q1 2023 results were marked by revenue growth, increased profitability, and revised financial guidance.

TransDigm Group reported a strong first quarter for fiscal year 2023, with net sales increasing by 17% to $1,397 million and adjusted earnings per share rising by 53% to $4.58. The company's EBITDA As Defined margin improved to 50.0%, and it raised its full-year financial guidance due to these strong results and favorable trends in the commercial aerospace market.

  • Net sales increased by 17% year-over-year, reaching $1,397 million.
  • Adjusted earnings per share grew by 53% compared to the previous year's quarter, amounting to $4.58.
  • EBITDA As Defined margin improved to 50.0%, a 270 basis point increase from the prior year.
  • Fiscal year 2023 financial guidance was revised upward, reflecting strong first-quarter performance and positive market trends.

Headline financials

Total Revenue

$1.4B

Previous: $1.19B+17.0%
EPS (adj)

$4.58

Previous: $3.00+52.7%
Organic Sales Growth

15.2%

Previous: 8.7%+74.7%
Capital Expenditures

-$31M

Previous: -$25M-24.0%
Free Cash Flow

$197M

Previous: $138M+42.8%
Net Income

$228M

Previous: $163M+39.9%
Operating Income

$590M

Previous: $455M+29.7%
Gross Profit

$793M

Previous: $661M+20.0%
Cash & Equivalents

$3.29B

Previous: $4.81B-31.7%
Total Assets

$18.5B

Previous: $19.2B-3.9%
Stock-Based Comp

$35M

Previous: $37M-5.4%

Revenue & EPS history

Transdigm · Revenue · Quarterly

$1.4B

Q1 2023+17%vs Q1 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

TransDigm raised its full year guidance primarily to reflect strong first quarter results and current expectations for the remainder of the fiscal year.

Tailwinds

  • Net sales are anticipated to be in the range of $6,070 million to $6,240 million.
  • Net income from continuing operations is anticipated to be in the range of $1,080 million to $1,160 million.
  • Earnings per share from continuing operations is expected to be in the range of $18.24 to $19.64 per share based upon weighted average shares outstanding of 57.1 million shares.
  • EBITDA As Defined is anticipated to be in the range of $3,060 million to $3,160 million.
  • Adjusted earnings per share is expected to be in the range of $21.47 to $22.87 per share.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.5%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+1.4%

Avg return

30 days after

53%

35 / 66 earnings

Positive

+16.5%

Q3 2019

Best reaction

-11.9%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+5.1%+5.6%+6.7%
Q1 2026-9.3%-10.4%-9.8%
Q4 2025+1.0%+3.2%+0.1%
Q3 2025-11.9%-13.6%-20.3%
Q2 2025-5.6%-6.7%-1.9%
Q1 2025-3.3%-1.9%-0.6%
Q4 2024-2.3%-2.0%-7.5%
Q3 2024-0.6%+3.0%+9.9%
Q2 2024+1.0%+0.7%+2.5%
Q1 2024-2.4%-2.2%+1.6%
Q4 2023+10.9%+11.3%+9.9%
Q3 2023-4.8%-4.5%-2.9%
Q2 2023+4.9%+3.0%+4.5%
Q1 2023+4.7%+1.4%+2.9%
Q4 2022+7.5%+6.0%+4.6%
Q3 2022+3.9%+5.5%-4.0%
Q2 2022+4.6%+3.3%+11.4%
Q1 2022+2.7%+0.8%+0.1%
Q4 2021+0.8%-3.3%-11.8%
Q3 2021-0.7%-3.6%-4.8%
Q2 2021-3.8%-0.7%+9.7%
Q1 2021-3.4%-3.9%-0.5%
Q4 2020+1.1%+3.1%+7.3%
Q3 2020+8.2%+9.0%+13.3%
Q2 2020-6.7%+3.0%+40.7%
Q1 2020-4.0%-2.7%-17.8%
Q4 2019+1.3%-0.9%+1.3%
Q3 2019+16.5%+18.1%+15.5%
Q2 2019+1.3%-0.3%-1.4%
Q1 2019+4.3%+5.7%+6.2%
Q4 2018+3.8%+3.0%+0.2%
Q3 2018-3.1%-3.2%-4.1%
Q2 2018-0.5%+0.7%+4.2%
Q1 2018-1.6%-4.8%-3.7%
Q4 2017-6.3%-5.9%-3.6%
Q3 2017-2.3%-3.5%-10.8%
Q2 2017-4.0%-4.6%+7.1%
Q1 2017+7.1%+9.6%+4.6%
Q4 2016-4.9%-8.2%-7.9%
Q3 2016+3.1%+1.5%+3.4%
Q2 2016+9.5%
Q1 2016-10.1%
Q4 2015+5.0%
Q3 2015+4.1%
Q2 2015-0.1%
Q1 2015-2.7%
Q4 2014+3.3%
Q3 2014+1.5%
Q2 2014-2.3%
Q1 2014+5.1%
Q4 2013-0.5%
Q3 2013-3.4%
Q2 2013-1.2%
Q1 2013+1.5%
Q4 2012+3.5%
Q3 2012+1.2%
Q2 2012-1.4%
Q1 2012+2.0%
Q4 2011-1.2%
Q3 2011+2.3%
Q2 2011+0.7%
Q1 2011+1.5%
Q4 2010+2.9%
Q3 2010-1.3%
Q2 2010+3.7%
Q1 2009-0.8%

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