TransDigm Group (NYSE: TDG) reported Q4 EPS of $5.62, $0.38 better than the analyst estimate of $5.24. Revenue for the quarter came in at $1.54 billion versus the consensus estimate of $1.61 billion.

Fourth quarter highlights include:

• Net sales of $1,541.3 million, up 46.9% from $1,049.4 million;
• Net income from continuing operations of $316.0 million, up 37.2% from $230.3 million;
• Earnings per share from continuing operations of $4.08, down 1.4% from $4.14;
• EBITDA As Defined of $707.2 million, up 34.8% from $524.8 million; and
• Adjusted earnings per share of $5.62, up 26.6% from $4.44.

"We are pleased with our operating results and the strength of the consolidated TransDigm business," stated Kevin Stein, TransDigm Group's President and Chief Executive Officer. "Our consolidated business performed exceptionally well in the fourth quarter with good growth in all major end markets. The Esterline acquisition continues to track ahead of our expectations."

Mr. Stein continued, "Fiscal 2019 was a busy but very successful year for TransDigm. Full year organic revenue growth was strong at 10.5%, we completed the largest acquisition in our history and returned $30 per share, or approximately $1.7 billion, to our shareholders in the form of special dividend paid in August. The recently completed financing transactions will leave us with significant liquidity and financial flexibility to meet any capital market requirements or other opportunities. We look forward to fiscal 2020 and the opportunity to continue to create value for our stakeholders."

GUIDANCE:

TransDigm Group sees FY2020 EPS of $16.30-$17.70, versus the consensus of $21.25. TransDigm Group sees FY2020 revenue of $6.175-6.325 billion, versus the consensus of $6.34 billion.

Fiscal 2020 Outlook

Assuming no additional acquisitions or divestitures, TransDigm expects fiscal 2020 financial guidance to be as follows:

• Net sales are anticipated to be in the range of $6,175 million to $6,325 million compared with $5,223 million in fiscal 2019;
• Net income from continuing operations is anticipated to be in the range of $1,000 million to $1,080 million compared with $839 million in fiscal 2019;
• Earnings per share from continuing operations is expected to be in the range of $16.30 to $17.70 per share based upon weighted average shares outstanding of 57.4 compared with $12.94 per share in fiscal 2019;
• EBITDA As Defined is anticipated to be in the range of $2,775 million to $2,875 million compared with $2,419 million in fiscal 2019;
• Adjusted earnings per share is expected to be in the range of $19.80 to $21.20 per share compared with $18.27 per share in fiscal 2019; and
• Fiscal 2020 outlook is based on the following market growth assumptions:
  • Commercial aftermarket revenue growth in the mid to high-single-digit percentage range;
  • Commercial OEM revenue growth in low to mid-single-digit percentage range; and
  • Defense revenue growth in mid-single-digit percentage range.

For earnings history and earnings-related data on TransDigm Group (TDG) click here.