Overview

* TransDigm ( TDG ) fiscal Q3 revenue rises 9% but missed analyst expectations, per LSEG data

* Adjusted EPS for fiscal Q3 up 7% but missed analyst expectations, per LSEG data

* Co announces acquisitions of Servotronics and Simmonds, deploying over $900 mln in capital

Outlook

* TransDigm ( TDG ) lowers fiscal 2025 sales guidance by $60 mln

* Company raises fiscal 2025 EBITDA guidance midpoint by $40 mln

* TransDigm ( TDG ) expects fiscal 2025 EPS between $32.39 and $33.21

* Company anticipates fiscal 2025 sales between $8,760 mln and $8,820 mln

Result Drivers

* COMMERCIAL AFTERMARKET - Growth moderated but still performed well, contributing to overall sales increase

* OEM MARKET CHALLENGES - Sales fell short due to lower build rates and inventory destocking, impacting expectations

* OPERATING STRATEGY - Value-driven strategy and lower refinancing costs boosted net income, despite higher interest expenses

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $2.24 $2.29

Revenue bln bln (17

Analysts

)

Q3 Miss $9.6 $9.97

Adjusted (20

EPS Analysts

)

Q3 EPS $8.47

Q3 Miss $558 mln $568.50

Adjusted mln (13

Net Analysts

Income )

Q3 $1.22

EBITDA bln

Q3 6.3%

Organic

Growth

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the aerospace & defense peer group is "buy"

* Wall Street's median 12-month price target for TransDigm Group Inc ( TDG ) is $1,700.00, about 5.4% above its August 4 closing price of $1,608.98

* The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 35 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)