TransDigm Group Fiscal Second-Quarter Results Decline on COVID-19 Impact as Guidance Remains Suspended
11:21 AM EDT, 05/11/2021 (MT Newswires) -- TransDigm Group (TDG) reported lower results in the fiscal second quarter as the COVID-19 pandemic continued to take its toll on the aircraft industry while the company opted to keep its 2021 guidance suspended.
The Cleveland-based aerospace manufacturing company on Tuesday posted adjusted earnings of $2.58 per share in the quarter ended April 3, down from $5.10 a year ago. Analysts polled by Capital IQ projected $2.54. Sales fell to $1.19 billion from $1.44 billion. The Street forecast was $1.18 billion.
"The commercial aerospace industry has continued to show signs of recovery in recent months with the distribution of the COVID-19 vaccine and increasing air traffic, especially in certain domestic markets," said Chief Executive Kevin Stein. "These trends are encouraging and although the pace of the recovery is uncertain, we remain ready to meet the demand as it returns."
Commercial original equipment manufacturer pro forma revenue in the quarter fell 43%, commercial aftermarket dropped 39% and defense gained 8%, according to an earnings presentation.
TransDigm did not issue guidance for 2021 "given the considerable uncertainty around the extent and duration of business disruptions related to the COVID-19 pandemic," the company said.
The company, however, expects defense revenue growth of mid-single-digit percentage versus the previous range of low-single-digit to mid-single-digit growth and maintained its earnings before interest, taxes, depreciation and amortization margin guidance of 44%, including the benefit from Cobham Aero Connectivity, which it acquired in the fiscal second quarter.
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