NYSE$TDG

Transdigm Group Incorporated · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reports fiscal 2024 third quarter results with revenue ahead of expectations and improved EBITDA As Defined margin.

TransDigm Group Incorporated reported a 17% increase in net sales to $2,046 million and a 31% increase in net income to $461 million for the third quarter ended June 29, 2024. The company also revised its fiscal year 2024 financial guidance upward, reflecting continued strong performance and recent acquisitions.

  • Net sales increased by 17% to $2,046 million compared to the prior year's quarter.
  • Net income rose by 31% to $461 million from the prior year's quarter.
  • Adjusted earnings per share increased by 24% to $9.00.
  • Fiscal 2024 financial guidance was revised upward to reflect strong performance and recent acquisitions.

Headline financials

Total Revenue

$2.05B

Previous: $1.74B+17.3%
EPS

$7.96

Previous: $7.25+9.8%
EBITDA As Defined Margin

53.3%

No prior period
Capital Expenditures

-$124M

Previous: -$102M-21.6%
Free Cash Flow

$337M

Previous: $249M+35.3%
Net Income

$461M

Previous: $351M+31.3%
Operating Income

$934M

Previous: $783M+19.3%
Gross Profit

$1.22B

Previous: $1.03B+18.6%
Cash & Equivalents

$3.36B

Previous: $3.07B+9.4%
Total Assets

$21.8B

Previous: $19.6B+11.6%
Stock-Based Comp

$47M

Previous: $54M-13.0%

Revenue & EPS history

Transdigm · Revenue · Quarterly

$2.05B

Q3 2024+17.3%vs Q3 2023
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, as well as to include the recent acquisitions of SEI Industries, the CPI Electron Device Business and Raptor Scientific.

Tailwinds

  • Net sales are anticipated to be in the range of $7,870 million to $7,930 million.
  • Net income is anticipated to be in the range of $1,632 million to $1,678 million.
  • Earnings per share is expected to be in the range of $26.47 to $27.27 per share.
  • EBITDA As Defined is anticipated to be in the range of $4,100 million to $4,160 million.
  • Adjusted earnings per share is expected to be in the range of $32.62 to $33.42 per share.

Headwinds

  • Commercial OEM revenue growth around 20%.
  • Commercial aftermarket revenue growth in the mid-teens percentage range.
  • Defense revenue growth in the high-teens percentage range.

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 2024

Historical avgQ3 2024

+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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