- Zacks has downgraded TransDigm (TDG +0.2%) to a Strong Sell, following many concerns of increasing debt and interest expense.
- At the end of its last reported quarter (second-quarter 2014), TransDigm recorded long-term debt at $5.7B, compared with $4.3B in the prior-year quarter. Interest expenses have also increased to 22% Y/Y to $82M.
- Most recently, the company took out another $825M loan on June 4. Shares have declined over 12% since then. Weak financials have continued to cause downward estimate revisions for the company over the last 30 days.