By Mehr Bedi and Allison Lampert
(Reuters) -Textron on Thursday beat analyst estimates for quarterly profit on sustained orders for its private jets, but supply chain problems continue to weigh on deliveries.
The parent of Cessna business jets also raised its full-year adjusted earnings forecast and expects full-year adjusted profit per share of between $5.45 and $5.55, above its previous expectation of $5.20 to $5.30.
Shares of the owner of Bell Helicopters rose 1.8% in early market trading.
Demand for business jets remains resilient, with planemakers raising prices to counter costs, after more wealthy travelers sought to fly privately during the pandemic due to public health fears. Economic headwinds and higher interest rates, however, remain concerns for future orders.
Overall quarterly revenue of $3.34 billion missed analysts' estimate of $3.48 billion, as per LSEG data.
Textron (NYSE:TXT) Aviation delivered 39 jets, fewer than two analysts expected, during the three months ending Sept. 30.
Textron, which expects to deliver in the neighborhood of 175 to 180 private jets for the full year, anticipates higher deliveries in 2024 when supply chain problems should improve.
Textron CEO Scott Donnelly told analysts he is already seeing improvements with fewer parts overall arriving late, but delays remain a problem.
"If you're missing parts for (an) aircraft,.. you still can't deliver that aircraft," he said on a call.
Orders at the aviation unit, Textron's most profitable business, rose 12%, marking the strongest order quarter of the year, the company said on Thursday.
In September, Textron and NetJets signed an agreement, which analysts value at about $30 billion, giving the private jet firm owned by Berkshire Hathaway (NYSE:BRKa) the option to buy up to 1,500 additional Cessna Citation business jets over the next 15 years.
Revenue at Textron Aviation rose 14.7% to $1.34 billion.
On an adjusted basis, the company earned $1.49 per share, higher than the estimate of $1.29.