TRANSDIGM GROUP Reports Record Q3 Earnings for FY2023
August 16, 2023
🌥️Earnings Overview
TRANSDIGM GROUP ($NYSE:TDG) reported total revenue of USD 1744.0 million and net income of USD 351.0 million for their fiscal year 2023 third quarter, which ended on June 30 2023. This marks a 24.7% increase in revenue and 47.5% increase in net income from the same period in the prior year.
Share Price
On Tuesday, TRANSDIGM GROUP reported record earnings for its third quarter of the fiscal year 2023. The company’s stock opened at $927.5 and closed at $888.9, a decrease of 2.8% from the prior closing price of $914.2. The company’s products and services offer solutions for companies in sectors such as civil aviation, military aviation, space exploration and commercial transportation, among others.
TRANSDIGM GROUP’s CEO, Jack Ripper, stated that the company was pleased with its performance, which exceeded their expectations for the quarter. He added that the company will continue to invest in innovation and technology to further grow its portfolio and remain competitive in the global market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Transdigm Group. More…
| Total Revenues | Net Income | Net Margin |
| 6.24k | 1.07k | 18.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Transdigm Group. More…
| Operations | Investing | Financing |
| 1.19k | -900 | -1.04k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Transdigm Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 19.55k | 21.94k | -43.38 |
Key Ratios Snapshot
Some of the financial key ratios for Transdigm Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.5% | 8.9% | 42.9% |
| FCF Margin | ROE | ROA |
| 16.8% | -63.2% | 8.6% |
Analysis
At GoodWhale, we have conducted an analysis of TRANSDIGM GROUP‘s fundamentals. From our Star Chart, we give the company a high health score of 8/10 with regard to its cashflows and debt. This indicates that the company is in good to great financial health and is capable of sustaining itself in times of crisis. We have classified TRANSDIGM GROUP as a ‘Cheetah’ company, which means that it has achieved high revenue or earnings growth but is seen as less stable due to its lower profitability. This indicates that it is an ideal pick for investors looking to invest in a company with high growth potential. Since the company is strong in growth and profitability, but weak in asset and dividend, it appeals to investors who are interested in long-term growth and are willing to take on higher risk investments. More…
Peers
TransDigm Group Inc is a leading designer, producer, and supplier of aircraft components. The company’s main competitors are Chemring Group PLC, Triumph Group Inc, and AECC Aero-Engine Controls Co Ltd.
– Chemring Group PLC ($LSE:CHG)
The company’s market cap is 849.54M as of 2022 and has a ROE of 12.84%. The company is a leading international provider of specialist products, services and solutions for military, homeland security and commercial markets.
– Triumph Group Inc ($NYSE:TGI)
Triumph Group Inc is a global aerospace and defense company that designs, manufactures, repairs and overhauls a wide variety of aircraft components, accessories, subsystems and systems. The company serves the commercial, military, business and general aviation markets, as well as the space and defense markets. Triumph Group has a market cap of 582.13M as of 2022 and a Return on Equity of -8.78%. The company has a long history of providing quality products and services to its customers, and is well-positioned to continue doing so in the future.
– AECC Aero-Engine Controls Co Ltd ($SZSE:000738)
AECC Aero-Engine Controls Co Ltd is a leading manufacturer of aircraft engines and engine controls. The company has a market cap of $37.18 billion and a return on equity of 4.22%. AECC Aero-Engine Controls Co Ltd designs, develops, manufactures, and sells aero-engines and engine controls for use in aviation and power generation applications. The company’s products are used in a variety of aircraft, including commercial jets, business jets, and helicopters. AECC Aero-Engine Controls Co Ltd has over 3,000 employees and is headquartered in Shanghai, China.
Summary
TransDigm Group‘s third quarter earnings results have been strong, despite the global economic challenges. Total revenue increased 24.7% year-over-year, with net income improving by 47.5%. This is a positive development for investors, as it shows that TransDigm Group is on track to meet its long-term growth goals. With its strong financial performance, TransDigm Group offers excellent potential for investors looking for a reliable long-term return.
It has a diverse portfolio of products and services, a strong balance sheet, and a proven track record of executing its strategies. Investing in TransDigm Group could be a great opportunity to capitalize on its potential.
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