Transdigm Group (NYSE:TDG) Issues Earnings Results, Misses Estimates By $0.15 EPS

Key Points

• Transdigm Group reported earnings of $9.60 per share for the quarter, which fell short of analyst estimates of $9.75, while revenue was $2.24 billion, below the expected $2.29 billion.
• Shares of Transdigm Group dropped 12.2% during trading, now sitting at approximately $1,412.68, with a year-long range between $1,183.60 and $1,623.82.
• Multiple analysts have recently raised their price targets for Transdigm, with a consensus target price now set at $1,606.47, reflecting a predominantly bullish outlook.

Transdigm Group (NYSE:TDG - Get Free Report) released its earnings results on Tuesday. The aerospace company reported $9.60 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $9.75 by ($0.15), Briefing.com reports. Transdigm Group had a net margin of 20.98% and a negative return on equity of 35.26%. The company had revenue of $2.24 billion during the quarter, compared to analysts' expectations of $2.29 billion. During the same quarter in the previous year, the firm posted $9.00 earnings per share. Transdigm Group's revenue for the quarter was up 9.3% compared to the same quarter last year. Transdigm Group updated its FY 2025 guidance to 36.330-37.150 EPS.

Transdigm Group Trading Down 0.2%

TDG traded down $2.58 on Thursday, reaching $1,398.65. The company had a trading volume of 63,291 shares, compared to its average volume of 283,464. The company has a fifty day moving average of $1,510.81 and a 200-day moving average of $1,409.83. The company has a market capitalization of $78.56 billion, a P/E ratio of 46.35, a PEG ratio of 2.86 and a beta of 1.07. Transdigm Group has a one year low of $1,183.60 and a one year high of $1,623.82.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on TDG shares. Citigroup boosted their target price on shares of Transdigm Group from $1,635.00 to $1,795.00 and gave the company a "buy" rating in a report on Monday, July 14th. Wells Fargo & Company lifted their price target on shares of Transdigm Group from $1,375.00 to $1,540.00 and gave the company an "overweight" rating in a research report on Thursday, May 8th. Wall Street Zen raised shares of Transdigm Group from a "hold" rating to a "buy" rating in a research report on Saturday, May 17th. Stifel Nicolaus started coverage on shares of Transdigm Group in a research report on Tuesday, June 24th. They set a "buy" rating and a $1,710.00 target price on the stock. Finally, Truist Financial boosted their target price on shares of Transdigm Group from $1,553.00 to $1,730.00 and gave the stock a "buy" rating in a research report on Friday, July 11th. Four investment analysts have rated the stock with a hold rating and twelve have given a buy rating to the company. Based on data from MarketBeat, Transdigm Group has a consensus rating of "Moderate Buy" and an average target price of $1,606.47.

Insider Transactions at Transdigm Group

In other Transdigm Group news, Director Sean P. Hennessy sold 4,700 shares of the company's stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $1,436.52, for a total transaction of $6,751,644.00. Following the completion of the sale, the director directly owned 33,713 shares of the company's stock, valued at approximately $48,429,398.76. This represents a 12.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Sarah Wynne sold 3,200 shares of the company's stock in a transaction dated Thursday, June 12th. The shares were sold at an average price of $1,452.15, for a total transaction of $4,646,880.00. Following the sale, the chief financial officer directly owned 3,400 shares of the company's stock, valued at $4,937,310. This represents a 48.48% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 69,872 shares of company stock worth $100,747,061 over the last ninety days. Insiders own 4.09% of the company's stock.

Hedge Funds Weigh In On Transdigm Group

A hedge fund recently raised its stake in Transdigm Group stock. Empowered Funds LLC grew its holdings in Transdigm Group Incorporated (NYSE:TDG - Free Report) by 5.0% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,372 shares of the aerospace company's stock after purchasing an additional 65 shares during the period. Empowered Funds LLC's holdings in Transdigm Group were worth $1,898,000 as of its most recent SEC filing. 95.78% of the stock is currently owned by institutional investors and hedge funds.

About Transdigm Group

TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. The Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, databus and power controls, sensor products, switches and relay panels, hoists, winches and lifting devices, and cargo loading and handling systems.