TransDigm Posts Profit In Q4 - Update

(RTTNews) - TransDigm Group Inc. (TDG) Thursday reported a profit for the fourth quarter, helped by 19 percent growth in net sales, and lower dividend equivalent payments.

For the fourth quarter ended September 2014, the aircraft components maker's net income applicable to common stock was $108.16 million, compared to a loss of $11.11 million last year.

On a per-share basis, the company reported earnings of $1.91, compared with a loss of $0.20 in the prior-year period, reflecting dividend equivalent payments.

Earnings per share were reduced in both 2014 and 2013 by $0.11 and $1.67 per share respectively, representing dividend equivalent payments during each quarter.

Excluding certain items, adjusted earnings per share were $2.21 for the recent quarter, while the company posted $1.75 per share last year.

On average, 16 analysts polled by Thomson-Reuters estimated earnings to be $2.02. Analysts' estimates typically exclude one-time items.

Net sales climbed to $642.24 million from $539.74 million last year, and came above the $631.54 million Wall Street expected. Organic net sales grew about 10.1 percent.

For fiscal 2015, the company expects earnings of $429 million to $443 million, or $7.51 to $7.77 per share, on net sales of $2.510 billion to $2.550 billion. On an adjusted basis, the company expects earnings of $8.03 to $8.29 per share.

Analysts expect earnings of $8.41 per share, on revenues of $2.57 billion for fiscal 2015.

Nicholas Howley, chairman and chief executive officer said, "Our fiscal 2015 guidance assumes that our commercial aftermarket revenues will be up in the high single-digit percentage range after strong growth in 2014. The commercial OEM revenues are expected to be in the mid-single digit range and defense revenues about flat."

TDG closed Wednesday's trading at $186.34.