NYSE$TDG

Transdigm Group Incorporated · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Transdigm Group reported third quarter results for fiscal year 2023, showing strong growth in net sales, income from continuing operations, and adjusted earnings per share. The company also revised its fiscal year 2023 financial guidance upward to reflect continued strong performance.

TransDigm Group's third quarter results for fiscal year 2023 showed significant growth, with net sales up 25% to $1,744 million and adjusted earnings per share up 49% to $7.25. The company also raised its full year guidance, reflecting strong performance and optimism in the commercial aerospace market recovery.

  • Net sales increased by 25% to $1,744 million compared to the prior year's quarter.
  • Adjusted earnings per share rose by 49% to $7.25 from $4.85 in the prior year's quarter.
  • EBITDA As Defined increased by 31% to $915 million, with a margin of 52.5%.
  • Fiscal year 2023 financial guidance was revised upward to reflect the company's strong performance.

Headline financials

Total Revenue

$1.74B

Previous: $1.4B+24.7%
EPS (adj)

$7.25

Previous: $4.85+49.5%
Organic Sales Growth

20.7%

Previous: 16.7%+24.0%
Capital Expenditures

-$102M

Previous: -$86M-18.6%
Free Cash Flow

$249M

Previous: $152M+63.8%
Net Income

$351M

Previous: $238M+47.5%
Operating Income

$783M

Previous: $599M+30.7%
Gross Profit

$1.03B

Previous: $816M+26.1%
Cash & Equivalents

$3.07B

Previous: $3.81B-19.4%
Total Assets

$19.6B

Previous: $18.8B+3.9%
Stock-Based Comp

$54M

Previous: $36M+50.0%

Revenue & EPS history

Transdigm · Revenue · Quarterly

$1.74B

Q3 2023+24.7%vs Q3 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

TransDigm raised its full year guidance primarily to reflect strong third quarter results and current expectations for the remainder of the fiscal year, indicating optimism about the commercial aerospace market recovery.

Tailwinds

  • Net sales are anticipated to be in the range of $6,525 million to $6,585 million.
  • Net income from continuing operations is anticipated to be in the range of $1,227 million to $1,251 million.
  • Earnings per share from continuing operations is expected to be in the range of $20.78 to $21.20.
  • EBITDA As Defined is anticipated to be in the range of $3,350 million to $3,380 million.
  • Adjusted earnings per share is expected to be in the range of $24.94 to $25.36.

Headwinds

  • Impact of the COVID-19 pandemic on the business.
  • Sensitivity of the business to flight hours and customer profitability.
  • Current and future geopolitical or other worldwide events.
  • Cyber-security threats, natural disasters and climate change-related events.
  • Reliance on certain customers.

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 Q3 2023

Historical avgQ3 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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