Will Solid Segmental Sales Boost TransDigm's Q2 Earnings?

TransDigm Group Incorporated TDG is slated to report second-quarter fiscal 2025 results on May 6, before market open.TransDigm delivered a trailing four-quarter average earnings surprise of 6.50%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)The improving growth trends in commercial air travel and strong defense sales are likely to have bolstered the quarterly performance.TDG’s Power & Control Segment to Remain RobustStrong sales from the commercial aftermarket, backed by steadily improving commercial air travel demand and the resulting higher flight hours and utilization of aircraft, are likely to have contributed favorably to revenues from the Power & Control segment. Steadily improving U.S. Government defense spend outlays, boosting defense sales, are also likely to have boosted this unit’s top-line growth.The Zacks Consensus Estimate for the Power & Control segment’s fiscal second-quarter revenues is pegged at $1.04 billion, indicating a 14.1% improvement from the year-ago quarter’s figure.Transdigm Group Incorporated Price and EPS Surprise Transdigm Group Incorporated price-eps-surprise | Transdigm Group Incorporated QuoteTDG’s Airframe Segment Likely to Report Revenue GrowthSales from the Airframe segment are likely to have been boosted by the strong air travel growth and rising demand for this unit’s defense products, backed by solid government funding support.The Zacks Consensus Estimate for the segment’s fiscal second-quarter revenues is pegged at $1.10 billion, indicating 14.3% growth from the prior-year quarter’s actual.Q2 Estimates for TDGStrong sales expectations from both of its primary segments, which constitute approximately 98% of TDG’s total revenues, are likely to have bolstered its overall quarterly revenue performance.The Zacks Consensus Estimate for TDG’s fiscal second-quarter sales is pegged at $2.17 billion, indicating an improvement of 12.9% from the prior-year number.A strong top line is likely to have boosted TDG’s overall margin performance, which, along with its cost reduction initiatives, is likely to have contributed favorably to its quarterly bottom line.The Zacks Consensus Estimate for earnings is pegged at $8.85 per share, indicating an increase of 10.8% from the year-ago figure.What the Zacks Model Unveils for TDGOur proven model predicts an earnings beat for TransDigm this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.TDG’s Earnings ESP: TDG has an Earnings ESP of +6.22%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.TDG’s Zacks Rank: TDG currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.Other Stocks to ConsiderBelow, we have mentioned other players from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.Axon Enterprise AXON is set to report first-quarter 2025 earnings on May 7, 2025, after market close. It has an Earnings ESP of +9.28% and a Zacks Rank of 2 at present.The Zacks Consensus Estimate for AXON’s earnings is pegged at $1.27 per share, indicating year-over-year growth of 10.4%. The consensus estimate for its sales is pegged at $589.1 million, indicating year-over-year growth of 27.9%.CAE CAE is set to report its fiscal fourth-quarter 2025 results on May 13, after market close. It has an Earnings ESP of +4.91% and a Zacks Rank of 3 at present.The Zacks Consensus Estimate for CAE’s earnings is pegged at 31 cents per share, indicating year-over-year growth of 244.4%. The consensus estimate for its sales is pegged at $906.7 million, indicating year-over-year growth of 8.5%.CurtissWright CW is set to report its first-quarter results on May 7, after market close. It has an Earnings ESP of +0.12% and a Zacks Rank of 3 at present.The Zacks Consensus Estimate for CW’s earnings is pegged at $2.39 per share, indicating year-over-year growth of 20.1%. The consensus estimate for its sales is pegged at $767.2 million, indicating year-over-year growth of 7.6%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Transdigm Group Incorporated (TDG): Free Stock Analysis Report Curtiss-Wright Corporation (CW): Free Stock Analysis Report CAE Inc (CAE): Free Stock Analysis Report Axon Enterprise, Inc (AXON): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks