U.S. News

TransDigm 2Q net income falls on interest costs


Aircraft parts supplier TransDigm Group Inc. said Monday its net income in the fiscal second-quarter fell almost 6 percent as higher interest expenses offset better sales.

But the results beat Wall Street estimates and the company raised its full-year forecast, citing a better outlook for the aerospace market and the broader economy. Shares rose $2.41, or 4.7 percent, to $53.26 in morning trading.

TransDigm made $38 million, or 72 cents per share, during the quarter ended April 3. That's down from $40.3 million, or 77 cents per share, in the same 13-week period last year.

The company attributed the decline in income to higher interest expenses stemming from a $425 million debt offering last October.

Adjusted income, which excludes noncash compensation costs, acquisition related expenses and other items, was 78 cents per share. Analysts surveyed by Thomson Reuters, whose estimates typically exclude items, expected 76 cents per share, on average.

Revenue rose 6.8 percent to $206.1 million. Analysts expected $203.1 million, on average.

The company also raised its full-year forecast, saying it now expects adjusted income of $3.05 to $3.15 per share, up from $2.95 to $3.15 per share. Revenue should come in at $804 million to $835 million instead, an increase from $800 million to $831 million.

Analysts expect $3.04 per share on $820.2 million