Why TransDigm Stock Is Flying High Today
TransDigm Group (NYSE: TDG) beat estimates for the quarter, provided guidance that contains upside relative to expectations, and announced plans to put some of its cash pile to work. Investors are cheering the moves, sending TransDigm shares up 9.4% as of 11 a.m. EST Thursday.
TransDigm is hardly a household name, but the supplier of components for military and commercial aerospace platforms has been one of the top performers in its sector for some time now. Shares of TransDigm have gained more than 560% over the past decade, easily surpassing the S&P 500's 147% return.
The latest quarterly results provide no indication the momentum is slowing. TransDigm reported earnings of $8.03 per share in its fiscal fourth quarter ending Sept. 30 on revenue of $1.85 billion, topping Wall Street consensus for $7.53 per share in earnings on sales of $1.83 billion. Commercial spare-parts sales climbed 27% in the quarter, and defense sales grew by 15%.
Source Fool.com
