Supplier TransDigm forecasts annual profit below estimates on jet production risks
Nov 7 (Reuters) -Aerospace supplier TransDigm Group TDG.N on Thursday forecast its annual profit and revenue below analysts' expectations and highlighted risks around the pace of commercial jetliner production as the industry battles persistent supply shortages.
Shares of the company, which supplies aircraft components such as cockpit security systems and engine sensors for commercial and military jets, were down 1.85% before the bell.
"The commercial OEM guidance contains an appropriate level of risk around the expected OEM production build rates for fiscal 2025," TransDigm said in a statement.
The Ohio-based supplier expects its fiscal 2025 adjusted profit per share to be between $35.36 and $37.28, compared with analysts' average estimate of $39.01, according to data compiled by LSEG.
While TransDigm has predominantly benefited from booming demand for repairs on older jets in recent quarters, it also sells parts for new jets to planemakers Boeing BA.N and Airbus AIR.PA.
Boeing is working to emerge from a recent crisis after a near two-month walkout by about 33,000 workers halted production of most of its jets, with uncertainty prevailing on the company's production targets in 2025. Its rival Airbus continues to struggle with its own parts pressures.
TransDigm expects the rise in sales to jet makers in 2025 to be slower than that in its aftermarket business.
The company forecasts annual sales of $8.75 billion to $8.95 billion, the midpoint of which is below expectations of $8.92 billion.
For the fourth quarter, it posted an adjusted profit of $9.83 per share, above analysts' expectations of $9.29 per share.
Net Sales for the quarter through Sept. 30 jumped 18% to $2.19 billion, also edging past estimates of $2.17 billion.
Reporting by Anandita Mehrotra in Bengaluru; Editing by Shilpi Majumdar
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