TDG - TransDigm posts Q3 earnings beat but special dividend below analyst forecast

TransDigm Group ( NYSE: TDG ) -0.9% in Tuesday's trading after reporting better than expected FQ3 adjusted earnings but suspending its full-year guidance, citing uncertainty around the extent of business disruptions related to COVID-19.

The company also declared a special cash dividend of $18.50/share, which Wells Fargo analyst Matthew Akers said was below his forecast for a $25/share special dividend, according to Bloomberg.

Q3 income from continuing operations fell to $239M from $317M in the year-earlier quarter, with the decrease mostly due to a higher effective tax rate and a pension settlement charge for the Esterline Retirement Plan; revenues rose 15% Y/Y to $1.4B, and EBITDA increased to $643M from $572M a year ago.

The company said production delays have affected its primary original equipment manufacturer markets and commercial aftermarket operations.

"Global air traffic continues to trend upward with the pent-up demand for air travel. This positive momentum bodes well for the commercial aerospace recovery," TransDigm ( TDG ) President and CEO Kevin Stein said.

TransDigm's ( TDG ) stock price return shows a less than 1% loss YTD and a 1% increase during the past year .

For further details see: