Aerospace and defense company TransDigm (NYSE:TDG) will be announcing earnings results tomorrow before market open. Here's what to look for.
TransDigm beat analysts' revenue expectations by 2% last quarter, reporting revenues of $1.92 billion, up 20.5% year on year. It was a solid quarter for the company, with a decent beat of analysts' earnings and organic revenue estimates.
Is TransDigm a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting TransDigm's revenue to grow 15.2% year on year to $2.01 billion, slowing from the 24.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $8.55 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. TransDigm has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2.1% on average.
Looking at TransDigm's peers in the aerospace segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Howmet delivered year-on-year revenue growth of 14.1%, beating analysts' expectations by 2.5%, and Textron reported revenues up 3%, in line with consensus estimates. Howmet traded up 15.5% following the results while Textron was down 1.8%.
Read our full analysis of Howmet's results here and Textron's results here.
There has been positive sentiment among investors in the aerospace segment, with share prices up 2.8% on average over the last month. TransDigm is down 4.5% during the same time and is heading into earnings with an average analyst price target of $1,461.7 (compared to the current share price of $1,215).
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