UPDATE: TransDigm Group (TDG) Misses Q1 EPS by 17c, Miss on Revenues; Boosts FY18 EPS Outlook Above Consensus. FY18 Revenue Mid-Point Below Consesnus
TransDigm Group (NYSE: TDG) reported Q1 EPS of $2.62, $0.17 worse than the analyst estimate of $2.79. Revenue for the quarter came in at $848 million versus the consensus estimate of $860.1 million.
Highlights for the first quarter include:
- Net sales of $848.0 million, up 4.2% from $814.0 million;
- Net income from continuing operations of $312.0 million, up 162.5% from $118.9 million;
- Earnings per share from continuing operations of $4.60, up 1,022.0% from $0.41;
- EBITDA As Defined of $401.5 million, up 5.3% from $381.2 million;
- Adjusted earnings per share of $5.58, up 121.4% from $2.52, this includes $2.96 per share of favorable impact from tax reform; and
- Upward revision to fiscal 2018 net income and earnings per share guidance.
Fiscal 2018 Outlook
Mr. Howley continued, "We are leaving our revenue and EBITDA guidance unchanged at this time until we see how the year is proceeding. We have significantly increased our net income and earnings per share guidance to reflect the impact of tax reform." Assuming no acquisitions and based upon current market conditions, TransDigm expects fiscal 2018 financial guidance to be as follows:
- Net sales are anticipated to be in the range of $3,645 million to $3,725 million compared with $3,504 million in fiscal 2017;
- Net income from continuing operations is anticipated to be in the range of $906 million to $942 million compared with $629 million in fiscal 2017;
- Earnings per share from continuing operations are expected to be in the range of $15.29 to $15.93 per share based upon weighted average shares outstanding of 55.6 compared with $8.45 per share in fiscal 2017;
- EBITDA As Defined is anticipated to be in the range of $1,805 million to $1,855 million compared with $1,711 million in fiscal 2017; and
- Adjusted earnings per share are expected to be in the range of $16.95 to $17.59 per share compared with $12.38 per share in fiscal 2017.
Please see the attached table 6 for a reconciliation of EBITDA, EBITDA As Defined to net income and reported earnings per share to adjusted earnings per share guidance mid-point estimated for the fiscal year ending September 30, 2018. Additionally, please see the attached table 7 for comparison of the current fiscal year 2018 guidance versus the previously issued fiscal year 2018 guidance.
GUIDANCE:
TransDigm Group sees FY2018 EPS of $16.95-$17.59, versus the consensus of $13.59. TransDigm Group sees FY2018 revenue of $3.645-3.725 billion, versus the consensus of $3.71 billion.
For earnings history and earnings-related data on TransDigm Group (TDG) click here.