Zacks Research Predicts Weaker Earnings for Transdigm Group

Key Points

• Zacks Research has lowered its Q1 2026 earnings estimate for Transdigm Group to $8.50 per share, down from $8.52, with full-year earnings projected at $35.13 per share.
• In its latest earnings report, Transdigm reported $9.60 EPS, missing analysts' expectations of $9.75, while revenue grew 9.3% year-over-year but fell short of estimates at $2.24 billion.
• Transdigm recently declared a special dividend of $90.00, an increase from the previous special dividend of $75.00, indicating strong shareholder returns despite earnings challenges.

Transdigm Group Incorporated (NYSE:TDG - Free Report) - Stock analysts at Zacks Research reduced their Q1 2026 earnings estimates for shares of Transdigm Group in a research note issued on Friday, October 10th. Zacks Research analyst Team now expects that the aerospace company will earn $8.50 per share for the quarter, down from their prior estimate of $8.52. The consensus estimate for Transdigm Group's current full-year earnings is $35.13 per share. Zacks Research also issued estimates for Transdigm Group's Q2 2026 earnings at $9.47 EPS, Q3 2026 earnings at $10.20 EPS and FY2026 earnings at $38.15 EPS.

Transdigm Group (NYSE:TDG - Get Free Report) last released its 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). The firm had revenue of $2.24 billion during the quarter, compared to analysts' expectations of $2.29 billion. Transdigm Group had a net margin of 20.98% and a negative return on equity of 35.27%. Transdigm Group's revenue for the quarter was up 9.3% on a year-over-year basis. During the same quarter last year, the company posted $9.00 earnings per share. Transdigm Group has set its FY 2025 guidance at 36.330-37.150 EPS.

TDG has been the topic of a number of other reports. KeyCorp reduced their target price on shares of Transdigm Group from $1,700.00 to $1,600.00 and set an "overweight" rating on the stock in a report on Friday, August 8th. Stifel Nicolaus started coverage on shares of Transdigm Group in a report on Tuesday, June 24th. They set a "buy" rating and a $1,710.00 price objective on the stock. UBS Group increased their price objective on shares of Transdigm Group from $1,815.00 to $1,839.00 and gave the stock a "buy" rating in a report on Thursday, August 7th. The Goldman Sachs Group increased their price objective on shares of Transdigm Group from $1,526.00 to $1,709.00 and gave the stock a "buy" rating in a report on Monday, June 23rd. Finally, Jefferies Financial Group cut their price objective on shares of Transdigm Group from $1,650.00 to $1,490.00 and set a "buy" rating on the stock in a report on Wednesday, September 17th. Twelve research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $1,579.13.

Transdigm Group Trading Up 0.1%

NYSE:TDG opened at $1,276.79 on Monday. The firm has a market cap of $71.95 billion, a price-to-earnings ratio of 42.38, a price-to-earnings-growth ratio of 2.79 and a beta of 1.02. The company's 50-day moving average is $1,341.66 and its two-hundred day moving average is $1,407.60. Transdigm Group has a 12-month low of $1,183.60 and a 12-month high of $1,623.82.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. grew its position in Transdigm Group by 5.3% in the second quarter. Vanguard Group Inc. now owns 6,693,889 shares of the aerospace company's stock valued at $10,178,995,000 after acquiring an additional 333,965 shares in the last quarter. State Street Corp grew its position in Transdigm Group by 2.5% in the second quarter. State Street Corp now owns 2,343,288 shares of the aerospace company's stock valued at $3,563,297,000 after acquiring an additional 56,141 shares in the last quarter. Geode Capital Management LLC grew its position in Transdigm Group by 1.5% in the second quarter. Geode Capital Management LLC now owns 1,214,396 shares of the aerospace company's stock valued at $1,837,459,000 after acquiring an additional 17,946 shares in the last quarter. Norges Bank acquired a new stake in Transdigm Group in the second quarter valued at approximately $1,275,035,000. Finally, Edgewood Management LLC grew its position in Transdigm Group by 6.2% in the second quarter. Edgewood Management LLC now owns 696,211 shares of the aerospace company's stock valued at $1,058,686,000 after acquiring an additional 40,837 shares in the last quarter. Hedge funds and other institutional investors own 95.78% of the company's stock.

Insider Buying and Selling at Transdigm Group

In related news, Director Robert J. Small sold 5,000 shares of the firm's stock in a transaction that occurred on Friday, September 12th. The shares were sold at an average price of $1,276.98, for a total value of $6,384,900.00. Following the transaction, the director owned 83,419 shares in the company, valued at approximately $106,524,394.62. This trade represents a 5.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director W Nicholas Howley sold 2,736 shares of the firm's stock in a transaction that occurred on Tuesday, July 15th. The shares were sold at an average price of $1,569.86, for a total transaction of $4,295,136.96. Following the completion of the transaction, the director owned 21,548 shares in the company, valued at $33,827,343.28. The trade was a 11.27% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 21,232 shares of company stock worth $29,496,571. 4.09% of the stock is currently owned by corporate insiders.

Transdigm Group Increases Dividend

The firm also recently declared a special dividend, which was paid on Friday, September 12th. Investors of record on Tuesday, September 2nd were issued a $90.00 dividend. The ex-dividend date was Tuesday, September 2nd. This is a positive change from Transdigm Group's previous special dividend of $75.00.

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.

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