TRANSDIGM GROUP Reports Second Quarter Revenue and Net Income Stable at USD 1592.0 and 304.0 Million Respectively.
May 23, 2023
Earnings Overview
TRANSDIGM GROUP ($NYSE:TDG) reported earnings results for the second quarter of FY 2023 on May 9 2023, with total revenue staying steady at USD 1592.0 million and net income at USD 304.0 million, the same as the same period in the previous year.
Price History
This marked the first time that the company reported second quarter results that were unchanged from the same quarter of the previous year. The company also noted that its stock opened at $780.0 and closed at $808.4, up by 4.7%, from the previous closing price of $772.3. This indicates a positive outlook for the company’s future performance as investors show confidence in its operations. It primarily serves the aerospace and defense markets with a diversified portfolio of products and businesses. These include precision components for aircrafts, safety systems for passenger aircrafts, propulsion systems, and advanced electronic systems.
In addition, the company has established a presence in the medical device market where it produces point-of-care diagnostic systems and other medical products. Overall, the TRANSDIGM GROUP‘s second quarter results demonstrate stability in its financial performance. This coupled with the positive movement in its stock suggests that the company’s growth prospects remain intact. Moving forward, investors can expect to see continued success from the company as it expands its operations to new markets as well as maintains its presence in existing ones. 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 |
| 5.9k | 958 | 17.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Transdigm Group. More…
| Operations | Investing | Financing |
| 1.09k | -575 | -208 |
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 |
| 20.01k | 22.9k | -52.86 |
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 |
| -0.4% | 4.0% | 42.4% |
| FCF Margin | ROE | ROA |
| 16.3% | -50.1% | 7.8% |
Analysis
GoodWhale conducted an analysis of TRANSDIGM GROUP‘s wellbeing and the results were very positive. We found that TRANSDIGM GROUP had a high health score of 8/10 with regard to its cashflows and debt, showing that it is capable to sustain future operations in times of crisis. The Star Chart showed that TRANSDIGM GROUP was strong in growth, medium in profitability and weak in asset and dividend. Based on this information, we classified the company as a ‘rhino’, which is a type of company we conclude has achieved moderate revenue or earnings growth. Given the strong cashflow and debt position, investors looking for a certain level of financial stability may be interested in investing in such a company. Furthermore, the moderate revenue or earnings growth could be attractive to those more focused on a potential return on investment. 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 reported strong second quarter earnings for the financial year 2023, with total revenue of USD 1592.0 million and net income of USD 304.0 million, both staying relatively unchanged from the same period last year. This news caused the stock price to increase on the day of announcement, which suggests that investors remain confident in the company’s performance and future prospects. Going forward, investors should keep an eye on TransDigm’s ability to continue to deliver consistent growth and attractive returns over the long term.
Related Posts
Recent Posts
