Filed Under:
Tickers in this Article: TDG, TW, AIG, TGIC

TransDigm group Inc. (TDG) saw its share price jump from $26.50 to $30.30 (or a gain of 14.5%) on earnings related news. While the designer/supplier of aircraft components was not scheduled to release its quarterly earning's report until February 12, the firm did release some very encouraging financial figures and also boosted its 2007 earnings guidance earlier this week. More specifically, quarterly earnings are expected to be around $0.43 per share, which is more than double from the amount of earnings from the same period of last year ($0.19 per share). Furthermore, the firm's annual guidance was boosted from $1.68 per share to around $1.80 per share. All in all, 2007 looks to be a very good year for TransDigm, as the company anticipates that its upcoming acquisition of Aviation Technologies Inc should further boost its financial situation.

Not all the big gains for this week were a result of good earnings. 21st Century Insurance Group (TW) saw its shares jump from $16.34 to $20.94 (or a gain of 28.1%) this week over a buyout offer. American International Group (AIG) made an offer to acquire 21st Century for $19.75 a share, which comes out roughly to $690 million in total. Currently, American International Group is the firm's majority shareholder (it already owns over 60% of the 21st Century). By fully acquiring 21st Century Insurance, American International Group will be increasing its operations in the area of direct auto insurance sales.


One firm that fell out of the market's favor this week is Triad Guaranty (TGIC). Shares for the private mortgage insurance provider fell from $57.02 to $49.84 (or a decline of 12.6%) as a result of the release of disappointing quarterly earnings. The company reported that earnings for the fourth quarter of 2006 were $0.54 per share, which was a significant drop from the $0.85 per share earned from the same quarter from last year (Analyst estimates were for $1.32). Management cites that slowdown in the housing market had caused higher losses per claim. This meant that Triad needed to dip into its revenues in order boost its reserves in order to compensate for the higher losses.

comments powered by Disqus

Trading Center