Latest news with #TransDigm
Yahoo
3 days ago
- Business
- Yahoo
Servotronics Deal Rewrite Ignites Shareholder Value
Servotronics, Inc. (NYSE:SVT) announced that the company, along with TransDigm Group Incorporated (NYSE:TDG), has made adjustments to the Agreement and Plan of Merger, raising the tender offer price to $47 per share from $38 per share in cash for all outstanding shares. This decision was taken soon after the company received an unsolicited takeover proposal from a third party. While the external offer is not the one that can be prioritized, it signals enhanced shareholder value. A close-up of a scientist's hands manipulating a high-powered microscope to view cells. The servo-control components provider, encompassing manufacturing capabilities for aircraft, jet engines, and missiles, signifies a specialized acquisition prey in the aerospace supply chain. Although the transaction still faces the regulatory approval process and closing conditions, among other challenges, the acquisition perfectly syncs with TransDigm's portfolio expansion plans. This is a major factor in the current stock movement, with investors reacting positively to this update, translating to a stock rise. Now that the news is out, investors are staying tuned for the next move, hoping the tender offer delivers even more attractive returns. SVT has surged by nearly 328% since the start of 2025. While we acknowledge the potential of SVT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SVT and that has 100x upside potential, check out our report about the READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure. None.
Yahoo
23-05-2025
- Business
- Yahoo
TransDigm Agrees to Buy Servotronics for $110M, Expands Portfolio
TransDigm Group, Inc. TDG revealed that it signed a definitive merger agreement with Servotronics, Inc., resulting in the latter becoming an indirect, fully-owned subsidiary of TransDigm. The transaction is worth nearly $110 million in cash, including certain tax cash consideration reflects a 274% premium over Servotronics' closing share price on May 16, 2025. Servotronics serves the global aerospace and defense industry through the supply of its servo valves, which play a key role in supporting the manufacturing of commercial airplanes and business jets. It also provides essential components for various defense Servotronics holding long-term contracts with prime defense contractors of the U.S. Government for military programs and original equipment manufacturers (OEM) for commercial programs, its acquisition should help TDG expand its customer base, product offerings and market share in both the commercial aerospace OEM and defense industries. This, in turn, should bolster TransDigm's revenue generation prospects, profitability and operational efficiency in the coming the fact that a significant portion of Servotronics' sales is tied to aftermarket services within the commercial aerospace sector, this merger aligns with TransDigm's long-term strategy of acquiring highly developed components with strong aftermarket demand. The aerospace and defense industry has been witnessing a significant increasein mergers and acquisitions lately due to several factors like cost-reduction goals, portfolio diversification, achieving economies of scale, and enhancing operational efficiency for long-term growth. Through these transactions, industry players aim to strengthen their position in high-margin aftermarket services, tackle increasing performance and pricing demands from OEMs, and change geopolitical dynamics and heightened industry latest decision to acquire Servotronics seems to have been motivated by some or all of the aforementioned aerospace-defense companies that have recently indulged in acquisition deals are as January 2025, Curtiss-Wright Corporation CW announced the acquisition of Ultra Energy for $200 million in cash. The buyout should expand Curtiss-Wright's portfolio with highly complementary, crucial measurement and control solutions for upgrading current commercial nuclear power plants and designing new and advanced power plants, such as compact modular has a long-term (three to five years) earnings growth rate of 12%. The Zacks Consensus Estimate for its 2025 sales implies an improvement of 8.3%.In February 2025, HEICO Corporation HEI declared that its Flight Support Group acquired 90% of Millennium International, a leader in providing business and regional jet avionics repair has a long-term earnings growth rate of 17%. The Zacks Consensus Estimate for its fiscal 2025 sales implies an improvement of 11.4%.In February 2025, Teledyne Technologies, Inc. TDY announced that it completed the acquisition of some selected aerospace and defense electronics businesses from Excelitas Technologies Corp. for nearly $710 has a long-term earnings growth rate of 9.9%. The Zacks Consensus Estimate for its 2025 sales implies a year-over-year improvement of 6.2%. In the past six months, shares of TransDigm have gained 11.7% compared with the industry's growth of 1.3%. Image Source: Zacks Investment Research TDG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report Curtiss-Wright Corporation (CW) : Free Stock Analysis Report Heico Corporation (HEI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
TransDigm price target raised to $1,553 from $1,490 at Truist
Truist analyst Michael Ciarmoli raised the firm's price target on TransDigm (TDG) to $1,553 from $1,490 and keeps a Buy rating on the shares. The company's mixed results were accompanied by a reaffirmed FY25 outlook, with defense revenue growth having notched up and aero OEM having notched lower on bizjet/helo weakness, the analyst tells investors in a research note. Bookings trends remain solid despite airlines cutting capacity, the firm adds. Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on TDG: Disclaimer & DisclosureReport an Issue TransDigm price target raised to $1,645 from $1,451 at UBS TransDigm Group: Strong Market Position and Financial Performance Drive Buy Rating TransDigm Group's Strong Financial Performance and Strategic Outlook Earns Buy Rating from Ronald Epstein TransDigm Reports Strong Q2 Earnings Growth TransDigm's Q2 Earnings Call Highlights Growth and Caution
Globe and Mail
06-05-2025
- Business
- Globe and Mail
TransDigm Q2 Earnings Surpass Estimates, Sales Increase Y/Y
TransDigm Group Incorporated TDG reported second-quarter fiscal 2025 adjusted earnings of $9.11 per share, which beat the Zacks Consensus Estimate of $8.85 by 2.9%. The bottom line also improved 14% from the prior-year quarter's figure of $7.99 per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) The company reported GAAP earnings of $8.24 per share compared with $6.97 in the year-ago quarter. The year-over-year growth in the bottom line can be attributed to the increase in net sales and the application of TDG's value-driven operating strategy, lower one-time refinancing costs and decreased non-cash stock and deferred compensation expense. TransDigm's Q2 Sales Discussion Sales amounted to $2.15 billion, up 12% from $1.92 billion registered in the prior-year period. The reported figure, however, missed the Zacks Consensus Estimate of $2.17 billion by 0.7%. Organic sales, as a percentage of net sales, grew 6.9%. TDG's Operating Results The gross profit was $1.27 billion, up 10.6% from the year-ago quarter's level of $1.15 billion. TDG's interest expense increased 16% year over year to $378 million. Net income increased 18.9% year over year to $479 million. TransDigm's Financial Position Cash and cash equivalents as of March 29, 2025, amounted to $2.43 billion, down from $6.26 billion recorded as of Sept. 30, 2024. Long-term debt totaled $24.31 billion, up from $24.30 billion as of Sept. 30, 2024. Cash from operating activities amounted to $900 million compared with $865 million at the end of the second quarter of fiscal 2024. TDG's 2025 Guidance TransDigm reaffirmed its guidance for fiscal 2025. It still expects sales to be in the range of $8.75-$8.95 billion. The Zacks Consensus Estimate for the same is pegged at $8.86 billion, just above the midpoint of the company's guided range. TDG still expects fiscal 2025 adjusted earnings to be in the band of $35.51-$37.43 per share. The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $37.09 per share, higher than the midpoint of the company's guided range. TDG's Zacks Rank TransDigm currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Recent Defense Releases Lockheed Martin Corporation LMT reported first-quarter 2025 earnings of $7.28 per share, which beat the Zacks Consensus Estimate of $6.34 by 14.8%. The bottom line increased 15% from the year-ago quarter's reported figure of $6.33 per share. The company's net sales were $17.96 billion, which beat the consensus estimate of $17.76 billion by 1.1%. The top line also increased 4.5% from $17.20 billion reported in the year-ago quarter. Northrop Grumman Corporation NOC reported first-quarter 2025 adjusted earnings of $6.06 per share, which missed the Zacks Consensus Estimate of $6.21 by 2.4%. NOC's total sales of $9.47 billion in the first quarter missed the consensus estimate of $9.91 billion by 4.4%. The top line also declined 6.6% from $10.13 billion reported in the year-ago quarter. RTX Corporation 's RTX first-quarter 2025 adjusted earnings per share of $1.47 beat the Zacks Consensus Estimate of $1.35 by 8.9%. The bottom line also improved 9.7% from the year-ago quarter's level of $1.34 per share, driven by growth in adjusted segment operating profit. Its first-quarter sales totaled $20.31 billion, which surpassed the consensus estimate of $19.71 billion by 3%. The top line also surged a solid 5.2% from $19.31 billion recorded for the first quarter of 2024. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up 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 Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report Transdigm Group Incorporated (TDG): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis Report
Reuters
06-05-2025
- Business
- Reuters
TransDigm tops quarterly profit estimates on strong demand for aftermarket aero parts
May 6 (Reuters) - Aerospace supplier TransDigm Group (TDG.N), opens new tab topped second-quarter profit expectations on Tuesday and maintained its full-year earnings forecast, betting on strong demand for aftermarket parts and services from planemakers and carriers. Delayed delivery of new planes has pushed airlines to extend the use of older aircraft to cater to booming demand for air travel, which has boosted orders for profitable aftermarket parts at suppliers. TransDigm said it does not anticipate a "material headwind" from U.S. President Donald Trump's sweeping tariffs and reaffirmed its annual profit forecast of $32.27 to $34.19 per share. The company supplies aircraft components such as cockpit security systems and engine sensors for commercial and military jets, and counts planemakers Boeing (BA.N), opens new tab and Airbus ( opens new tab among its customers. Separately, TransDigm said on Tuesday that co-Chief Operating Officer Mike Lisman would succeed Kevin Stein as CEO, opens new tab. The Cleveland, Ohio-based firm posted an adjusted profit of $9.11 per share for the second quarter, while analysts had expected $8.95 per share, according to data compiled by LSEG. Net sales for the quarter through March 29, jumped 12% to $2.15 billion, below analysts' average expectation of $2.17 billion.
