TransDigm Analysts Increase Their Forecasts Following Strong Earnings
Portfolio Pulse from Lisa Levin
TransDigm Group Incorporated (NYSE:TDG) exceeded Q4 FY23 earnings expectations with a 23% year-on-year sales increase to $1.852 billion and an adjusted EPS of $8.03, surpassing consensus estimates. The company forecasts FY24 net sales between $7.48 billion and $7.68 billion and adjusted EPS of $31.00-$32.94, both above consensus. TransDigm also plans to acquire the Electron Device Business of Communications & Power Industries for $1.385 billion. Following the news, TDG shares rose 1%, and analysts at Susquehanna and Morgan Stanley raised their price targets for TDG.
November 10, 2023 | 6:18 pm
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POSITIVE IMPACT
TransDigm's strong Q4 earnings and positive FY24 outlook, coupled with the acquisition announcement, have led to a 1% stock increase and raised price targets from analysts.
The positive earnings report and higher future guidance suggest strong company performance, which typically leads to stock price appreciation. The acquisition could further enhance TransDigm's market position, justifying the raised price targets by analysts and potentially leading to further stock gains.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100