Earnings Preview for TransDigm Group (TDG)

TransDigm Group

will be reporting its fiscal second-quarter 2011 results tomorrow before the market opens. Analysts are looking for the company to post earnings of $0.99 per share on revenue of $315.6 million. That is up from $0.78 per share on $206.1 million in the same period of last year. The consensus earnings estimate is unchanged from 60 days ago. Cleveland-based TransDigm designs, produces and distributes a wide range of components for commercial and military aircraft. The company's subsidiaries include Adams Rite Aerospace, AeroControlex, Champion Aerospace and Marathon Norco Aerospace. Customers include distributors of aerospace components, national and regional commercial airlines, regional and business aircraft equipment manufacturers, the armed forces of the United States and foreign governments, and defense equipment manufacturers. So far, analysts anticipate sequential and year-over-year growth of both per-share earnings and revenue in the third quarter. Note that analysts have underestimated TransDigm's earnings in recent quarters; the profit beat the consensus estimate by more than 50% in the first quarter. Analysts have on average recommended buying TDG for more than 90 days. Their mean price target is currently $92.00 per share. Shares are trading near the recent 52-week high of $85.38, and the share price is about 15% higher year-to-date. The stock has outperformed competitors Goodrich

and United Technologies

, as well as the broader market, over the past year.