Although the revenue and EPS for TransDigm (TDG) give a sense of how its business performed in the quarter ended June 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

With a continued recovery in global air travel, aerospace stocks will see more gains in the coming years. Several tailwinds support the bullish thesis for these stocks.

TransDigm is showing strong revenue growth in all segments, with gross margins increasing to 59.6% and operating income up 19.3%. The company increased its FY2024 earnings outlook, with a revenue target of $7.87-$7.93 billion and an adjusted EPS range of $32.63-$33.42. Manageable debt maturity profile, no debt due until 2027, with potential for debt retirement or M&A activity. The stock has 15% upside potential.

TransDigm Group Incorporated (NYSE:TDG ) Q3 2024 Earnings Conference Call August 6, 2024 11:00 AM ET Company Participants Jaimie Stemen - Director, IR Kevin Stein - President & CEO Joel Reiss - Co-COO Sarah Wynne - CFO Conference Call Participants Scott Mikus - Melius Research Robert Stallard - Vertical Research Ken Herbert - RBC Capital Markets Ron Epstein - Bank of America Merrill Lynch Scott Deuschle - Deutsche Bank David Strauss - Barclays Kristine Liwag - Morgan Stanley Myles Walton - Wolfe Research Noah Poponak - Goldman Sachs Jason Gursky - Citi Ellen Page - Jefferies Rocco Barbara - JPMorgan Gautam Khanna - TD Cowen Gavin Parsons - UBS Michael Ciarmoli - Truist Securities Peter Arment - Baird Peter Skibitski - Alembic Global Bert Subin - Stifel Operator Welcome to the Third Quarter 2024 TransDigm Group Inc. Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

TransDigm (TDG) fiscal Q3 sales of $2.05 billion increase 17.3% from the prior-year quarter's reported actuals. The reported figure also beats the Zacks Consensus Estimate by 2.6%.

TransDigm Group (TDG) came out with quarterly earnings of $9 per share, beating the Zacks Consensus Estimate of $8.45 per share. This compares to earnings of $7.25 per share a year ago.

Aerospace supplier TransDigm Group on Tuesday beat third-quarter earnings estimates as robust travel demand led to increased orders for components and aftermarket parts from planemakers and carriers.

CLEVELAND , Aug. 6, 2024 /PRNewswire/ -- TransDigm Group Incorporated (NYSE: TDG), a leading global designer, producer and supplier of highly engineered aircraft components, today reported results for the third quarter ended June 29, 2024. Third quarter highlights include: Net sales of $2,046 million, up 17% from $1,744 million in the prior year's quarter; Net income of $461 million, up 31% from the prior year's quarter; Earnings per share of $7.96, up 30% from the prior year's quarter; EBITDA As Defined of $1,091 million, up 19% from $915 million in the prior year's quarter; EBITDA As Defined margin of 53.3%; Adjusted earnings per share of $9.00, up 24% from $7.25 in the prior year's quarter; and Upward revision to fiscal 2024 financial guidance to reflect TransDigm's continued strong performance as well as to include the recent acquisitions of SEI Industries, the CPI Electron Device Business and Raptor Scientific.

TransDigm's (TDG) fiscal third-quarter results are likely to reflect the benefits of steadily improving commercial air travel and the U.S. government's spending trend in defense.

Get a deeper insight into the potential performance of TransDigm (TDG) for the quarter ended June 2024 by going beyond Wall Street's top -and-bottom-line estimates and examining the estimates for some of its key metrics.

CLEVELAND , July 31, 2024 /PRNewswire/ -- TransDigm Group Incorporated (NYSE: TDG), today announced it has successfully completed its acquisition of Raptor Labs Holdco, LLC ("Raptor Scientific" or "the Company"), a portfolio company of L Squared Capital Partners, for approximately $655 million in cash, including certain tax benefits. TransDigm financed the acquisition through cash on hand.

TransDigm (TDG) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.