TransDigm Group (TDG) has reported a 9.76 percent rise in profit for the quarter ended Apr. 01, 2017. The company has earned $155.50 million, or $2.78 a share in the quarter, compared with $141.68 million, or $2.52 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $168.90 million, or $3.02 a share compared with $160.48 million or $2.86 a share, a year ago.
Revenue during the quarter grew 9.59 percent to $873.23 million from $796.80 million in the previous year period. Gross margin for the quarter expanded 282 basis points over the previous year period to 56.24 percent. Total expenses were 58.05 percent of quarterly revenues, down from 60.83 percent for the same period last year. This has led to an improvement of 279 basis points in operating margin to 41.95 percent.
Operating income for the quarter was $366.36 million, compared with $312.08 million in the previous year period.
"Commercial aftermarket revenues for the current fiscal second quarter compared slightly unfavorably to a very difficult comparison in the prior year quarter. On a positive note, most of our commercial aftermarket businesses had higher revenues versus the prior year quarter. Additionally, year-to-date commercial aftermarket bookings are running significantly ahead of shipments," stated W. Nicholas Howley, TransDigm Group's chairman and chief executive officer. "Our overall performance was in-line with our expectations for both the second quarter and first half of our fiscal 2017, despite some modest puts and takes across our markets. Commercial aftermarket revenues have been a little softer but this has been mostly offset by stronger defense revenues. Bookings, in not only the commercial aftermarket, but all of our major markets, have exceeded shipments. This contributes to our confidence in the growth for the second half of our fiscal year. Our year-to-date reported EBITDA As Defined margin continued to expand to 48%, up two margin points versus the prior year period, demonstrating our continual focus on the fundamentals of value generation for our shareholders."
For fiscal year 2017, TransDigm Group projects revenue to be in the range of $3,530 million to $3,570 million. The company forecasts net income to be $612 million. The company expects net income to be in the range of $605 million to $619 million. The company projects diluted earnings per share to be $9.28. The company forecasts diluted earnings per share to be in the range of $9.16 to $9.40. The company expects diluted earnings per share to be $12.21 on adjusted basis. The company forecasts diluted earnings per share to be in the range of $12.09 to $12.33 on adjusted basis.
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