Transdigm Group (NYSE:TDG) Updates FY 2025 Earnings Guidance

Key Points

• Transdigm Group has updated its FY 2025 earnings guidance, projecting earnings per share of $36.330-$37.150, which is below the consensus estimate of $37.502.
• The company also provided revenue guidance of $8.8 billion, slightly lower than the consensus estimate of $8.9 billion.
• Despite missing quarterly earnings estimates, Transdigm's revenue increased by 9.3% year-over-year, indicating growth in the aerospace sector.

Transdigm Group (NYSE:TDG - Get Free Report) issued an update on its FY 2025 earnings guidance on Tuesday morning. The company provided EPS guidance of 36.330-37.150 for the period, compared to the consensus EPS estimate of 37.502. The company issued revenue guidance of $8.8 billion-$8.8 billion, compared to the consensus revenue estimate of $8.9 billion.

Transdigm Group Trading Down 2.6%

Shares of TDG stock traded down $36.61 on Friday, reaching $1,392.54. 433,017 shares of the company's stock were exchanged, compared to its average volume of 334,686. Transdigm Group has a 52 week low of $1,183.60 and a 52 week high of $1,623.82. The stock has a market capitalization of $78.47 billion, a PE ratio of 46.22, a P/E/G ratio of 2.81 and a beta of 1.07. The company's fifty day simple moving average is $1,507.43 and its 200 day simple moving average is $1,411.00.

Transdigm Group (NYSE:TDG - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The aerospace company reported $9.60 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $9.75 by ($0.15). Transdigm Group had a negative return on equity of 35.27% and a net margin of 20.98%. The business had revenue of $2.24 billion for the quarter, compared to the consensus estimate of $2.29 billion. During the same period in the prior year, the business posted $9.00 earnings per share. Transdigm Group's revenue was up 9.3% on a year-over-year basis. As a group, sell-side analysts predict that Transdigm Group will post 35.13 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on TDG shares. Wall Street Zen raised Transdigm Group from a "hold" rating to a "buy" rating in a research note on Saturday, May 17th. Truist Financial raised their price target on Transdigm Group from $1,553.00 to $1,730.00 and gave the stock a "buy" rating in a research note on Friday, July 11th. Morgan Stanley lifted their target price on Transdigm Group from $1,575.00 to $1,750.00 and gave the company an "overweight" rating in a research report on Thursday, July 17th. KeyCorp decreased their target price on Transdigm Group from $1,700.00 to $1,600.00 and set an "overweight" rating for the company in a research report on Friday. Finally, UBS Group lifted their target price on Transdigm Group from $1,815.00 to $1,839.00 and gave the company a "buy" rating in a research report on Thursday. Four investment analysts have rated the stock with a hold rating and eleven have given a buy rating to the company's stock. According to data from MarketBeat, Transdigm Group has an average rating of "Moderate Buy" and a consensus target price of $1,616.86.

Insiders Place Their Bets

In other news, Director Robert J. Small sold 45,700 shares of Transdigm Group stock in a transaction on Tuesday, June 10th. The stock was sold at an average price of $1,425.01, for a total value of $65,122,957.00. Following the transaction, the director directly owned 88,419 shares in the company, valued at approximately $125,997,959.19. This trade represents a 34.07% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, COO Joel Reiss sold 3,000 shares of Transdigm Group stock in a transaction on Tuesday, May 20th. The shares were sold at an average price of $1,434.35, for a total value of $4,303,050.00. Following the completion of the transaction, the chief operating officer owned 3,600 shares in the company, valued at $5,163,660. This represents a 45.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 69,872 shares of company stock worth $100,747,061. Insiders own 4.09% of the company's stock.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in Transdigm Group stock. Empowered Funds LLC increased its holdings in shares of Transdigm Group Incorporated (NYSE:TDG - Free Report) by 5.0% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,372 shares of the aerospace company's stock after buying an additional 65 shares during the quarter. Empowered Funds LLC's holdings in Transdigm Group were worth $1,898,000 as of its most recent filing with the Securities and Exchange Commission (SEC). Institutional investors own 95.78% of the company's stock.

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.