TransDigm Group (NYSE: TDG) reported Q1 EPS of $4.93, $0.29 better than the analyst estimate of $4.64. Revenue for the quarter came in at $1.47 billion versus the consensus estimate of $1.45 billion.

First quarter highlights include:

• Net sales of $1,465 million, up 47.5% from $993 million;
• Net income from continuing operations of $233 million, up 18.9% from $196 million;
• Earnings per share from continuing operations of $0.83, down 72.8% from $3.05;
• EBITDA As Defined of $681 million, up 39.8% from $487 million;
• Adjusted earnings per share of $4.93, up 28.1% from $3.85; and
• Reaffirmation of our previously stated guidance for fiscal 2020 Sales, EBITDA As Defined and Adjusted Earnings Per Share.

"We are pleased with our first quarter operating results and the strong start to our fiscal year," stated Kevin Stein, TransDigm Group's President and Chief Executive Officer. "Our consolidated business performed well in the first quarter with organic revenue growth driven mainly by the commercial aftermarket and defense market. We are particularly pleased with our EBITDA As Defined improvement for the quarter. Excluding the dilutive impact of Esterline, our EBITDA As Defined continued to expand sequentially and over the prior year period to above 51% in the quarter. Additionally, the Esterline acquisition still continues to track ahead of our expectations."

GUIDANCE:

TransDigm Group sees FY2020 EPS of $19.80-$21.20, versus the consensus of $21.16. TransDigm Group sees FY2020 revenue of $6.175-6.325 billion, versus the consensus of $6.25 billion.

"We are maintaining our fiscal 2020 sales, EBITDA As Defined and adjusted earnings per share guidance at this time," Mr. Stein continued. "Currently we do not anticipate a material impact to our consolidated financial results from the evolving 737 Max situation and other global concerns. We are adjusting our GAAP earnings per share guidance to reflect the dividend equivalent payments related to the $32.50 special dividend declared in December."

Assuming no additional acquisitions, divestitures or refinancing transactions, 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 $14.20 to $15.60 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; and
• 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.

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