TRANSDIGM GROUP Reports Third Quarter Earnings Results for Fiscal Year 2023
August 20, 2023
🌥️Earnings Overview
On August 8, 2023, TRANSDIGM GROUP ($NYSE:TDG) released its financial results for the third quarter of fiscal year 2023, ending June 30, 2023. Total revenue was USD 1744.0 million, representing a 24.7% year-over-year increase. Net income also rose by 47.5%, reaching USD 351.0 million.
Stock Price
The company’s stock opened at $927.5 and closed at $888.9, representing a decrease of 2.8% from the prior closing price of $914.2. This marked the first drop in stock prices since the company released their quarterly earnings reports in April. This decrease was mainly due to lower sales in the commercial aviation segment. Despite the dip in stock prices on Tuesday, TRANSDIGM GROUP remains a strong and profitable company.
The company has a strong portfolio of products and services, with a focus on aircraft components and avionics systems. Going forward, it is expected that TRANSDIGM GROUP will continue to deliver strong results and growth in the coming quarters. 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 undertaken an analysis of TRANSDIGM GROUP‘s wellbeing. After a thorough examination, our Risk Rating has identified this as a high risk investment in terms of both financial and business aspects. We have detected three distinct warnings that should be taken into account when assessing the company’s viability; these can be reviewed in the income sheet, balance sheet, and non financial categories. To view these risks, please register as a user with GoodWhale. 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 experienced strong growth in their third quarter of fiscal 2023, with total revenues increasing by 24.7% year-over-year to USD 1744.0 million and net income increasing by 47.5% to USD 351.0 million. This makes for a very positive investment analysis of the company, indicating that it is continuing to perform well despite market volatility. It is likely that the company is capitalizing on its competitive advantages and expanding its reach in order to grow further. Investors should consider buying in to TRANSDIGM GROUP as the company is expected to continue its solid growth trajectory.
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