TransDigm Q2 Profit Rises; Adjusts Full Year 2014 Guidance - Quick Facts

(RTTNews) - TransDigm Group Incorporated (TDG) reported that its second-quarter net income to common stock increased to $84.87 million, or $1.49 per share, from $67.94 million, or $1.25 per share, a year ago. The company noted that its prior quarter included one-time costs attributable to the refinancing of senior secured credit facility in February 2013 of $20.5 million, net of tax, or $0.38 per share. The remainder of the increase in net income primarily reflects the growth in net sales partially offset by higher interest expense and acquisition-related costs. Adjusted net income was $106.6 million, or $1.87 per share, for the quarter.

On average, 16 analysts polled by Thomson Reuters expected the company to report profit per share of $1.92 for the quarter. Analysts' estimates typically exclude special items.

Net sales rose 26.9% to $590.8 million from $465.6 million. Organic net sales grew approximately 6.1%. The contribution from the acquisitions of Aerosonic, Airborne, Arkwin and Whippany Actuation accounted for the balance of the increase in net sales, the company said. Analysts expected revenue of $585.54 million for the quarter.

The company increased its full year fiscal 2014 guidance primarily to reflect the recent acquisition of EME, performance experienced to date and current expectations for the second half of our fiscal year.

Net sales are now anticipated to be in the range of $2.32 billion to $2.37 billion, compared to prior guidance range of $2.28 billion to $2.34 billion. Earnings per share are expected to be in the range of $6.33 to $6.57, compared to prior guidance range of $6.24 to $6.54. Adjusted earnings per share are expected to be in the range of $7.46 to $7.70, compared to prior guidance range of $7.35 to $7.65 per share. Analysts expect the company to report fiscal 2014 profit per share of $7.72 on revenue of $2.35 billion.