Shareholders might have noticed that TransDigm Group Incorporated (NYSE:TDG) filed its second-quarter result this time last week. The early response was not positive, with shares down 3.4% to US$1,385 in the past week. TransDigm Group reported US$2.2b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$8.24 beat expectations, being 2.5% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on TransDigm Group after the latest results.

Our free stock report includes 3 warning signs investors should be aware of before investing in TransDigm Group. Read for free now.NYSE:TDG Earnings and Revenue Growth May 9th 2025

Following the latest results, TransDigm Group's 22 analysts are now forecasting revenues of US$8.87b in 2025. This would be a satisfactory 5.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 12% to US$34.17. Before this earnings report, the analysts had been forecasting revenues of US$8.87b and earnings per share (EPS) of US$34.14 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for TransDigm Group

The analysts reconfirmed their price target of US$1,519, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic TransDigm Group analyst has a price target of US$1,680 per share, while the most pessimistic values it at US$1,300. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.2% annually. So it's pretty clear that TransDigm Group is forecast to grow substantially faster than its industry.

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The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for TransDigm Group going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - TransDigm Group has  3 warning signs  (and 2 which can't be ignored)  we think you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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