NYSE$TDG

Transdigm Group Incorporated · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Transdigm's Q4 2023 performance showcased significant growth, driven by strong sales and margin expansion.

TransDigm Group reported a strong fourth quarter with net sales of $1,852 million, a 23% increase year-over-year. Income from continuing operations rose by 56% to $414 million, and adjusted earnings per share increased by 46% to $8.03. The company's EBITDA As Defined margin was 52.0%. Additionally, the company declared a special cash dividend of $35.00 per share.

  • Net sales increased by 23% to $1,852 million compared to the prior year's quarter.
  • Income from continuing operations grew by 56% to $414 million year-over-year.
  • Adjusted earnings per share rose by 46% to $8.03 compared to the prior year.
  • The company declared a special cash dividend of $35.00 per share.

Headline financials

Total Revenue

$1.85B

Previous: $1.51B+22.6%
EPS (adj)

$8.03

Previous: $5.50+46.0%
Organic Sales Growth

18.5%

Previous: 16.4%+12.8%
Capital Expenditures

$37M

Previous: $33M+12.1%
Free Cash Flow

$425M

Previous: $240M+77.1%
Net Income

$414M

Previous: $266M+55.6%
Operating Income

$856M

Previous: $641M+33.5%
Gross Profit

$1.09B

Previous: $885M+23.3%
Cash & Equivalents

$3.47B

Previous: $3B+15.7%
Total Assets

$0.00

Previous: $0.00
Stock-Based Comp

$4M

Previous: $38M-89.5%

Revenue & EPS history

Transdigm · Revenue · Quarterly

$1.85B

Q4 2023+22.6%vs Q4 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

TransDigm anticipates continued commercial aerospace market recovery in fiscal year 2024, with favorable trends across commercial OEM, commercial aftermarket, and defense sectors. The guidance excludes any impact from the pending acquisition of the Electron Device Business of CPI.

Tailwinds

  • Net sales are anticipated to be in the range of $7,480 million to $7,680 million.
  • Net income from continuing operations is anticipated to be in the range of $1,641 million to $1,753 million.
  • Earnings per share from continuing operations is expected to be in the range of $26.61 to $28.55 per share.
  • EBITDA As Defined is anticipated to be in the range of $3,870 million to $4,010 million.
  • Adjusted earnings per share is expected to be in the range of $31.00 to $32.94 per share.

Headwinds

  • Guidance excludes any impact from the pending acquisition of the Electron Device Business of CPI.
  • Market growth assumptions are subject to change.
  • Commercial OEM revenue growth around 20%.
  • Commercial aftermarket revenue growth in the mid-teens percentage range.
  • Defense revenue growth in the mid to high-single-digit 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 Q4 2023

Historical avgQ4 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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