TransDigm Group Inc (NYSE:TDG), a leading global designer, producer and supplier of highly engineered aircraft components, stock fell 1.60% (As on February 5, 11:25:00 AM UTC-4, Source: Google Finance) after the company reported first-quarter earnings that beat analyst expectations, but revenue that fell slightly short of estimates. Organic sales growth as a percentage of net sales was 6.6%. Net income for the quarter increased $111 million, or 29.1%, to $493 million from $382 million in the comparable quarter a year ago. The increase in net income primarily reflects the increase in net sales, the application of the value-driven operating strategy and lower non-cash stock and deferred compensation expense. EBITDA for the quarter increased 26.5% to $1,087 million from $859 million for the comparable quarter a year ago.

TDG in the first quarter of FY 25 has reported the adjusted earnings per share of $7.83, beating the analysts’ estimates for the adjusted earnings per share of $7.64. The company had reported the adjusted revenue growth of 12.1 percent to $2.01 billion in the first quarter of FY 25, missing the analysts’ estimates for revenue of $2.02 billion.  EBITDA As Defined as a percentage of net sales for the quarter was 52.9% compared with 51.0% in the comparable quarter a year ago.

Additionally, TransDigm repurchased 252,800 shares during the quarter at an average price of $1,248.65 per share, totaling approximately $316 million.

The company maintained its market growth assumptions, projecting commercial OEM revenue growth in the mid-single digit range, commercial aftermarket growth in the high-single to low-double digit range, and defense revenue growth in the high-single digit range for fiscal 2025.

For fiscal 2025, TransDigm reaffirmed its revenue guidance of $8.75 billion to $8.95 billion, in line with analyst expectations of $8.9 billion. The company slightly raised its adjusted EPS outlook to a range of $35.51 to $37.43, compared to the previous forecast of $35.36 to $37.28. Net income is anticipated to be in the range of $1,925 million to $2,037 million compared with $1,715 million in fiscal 2024, an increase of 15.5% at the midpoint. EBITDA As Defined is anticipated to be in the range of $4,615 million to $4,755 million compared with $4,173 million in fiscal 2024, an increase of 12.3% at the midpoint (corresponding to an EBITDA As Defined margin guide of approximately 52.9% for fiscal 2025).