We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Triumph Group (TGI) Q1 Earnings Lag Estimates, Sales Fall Y/Y
Read MoreHide Full Article
Triumph Group Inc.’s (TGI - Free Report) first-quarter fiscal 2021 (ended Jun 30, 2020) adjusted loss was 19 cents per share, wider than the Zacks Consensus Estimate of a loss of 17 cents. The bottom line also deteriorated from earnings of 46 cents recorded in the prior-year quarter.
Including one-time adjustments, the company incurred GAAP loss of $5.35 per share in the fiscal first quarter against earnings of 36 centsreported in the year-ago quarter.
Reduced sales and operating income in the fiscal first quarter resulted in the deterioration in the bottom-line figure.
Total Sales
Net sales in the quarter under review came in at $495.1 million, outpacing the Zacks Consensus Estimate of $463 million by 7%. However, the top line slumped 32.2% on a year-over-year basis.
After taking divestitures into account, organic sales in the quarter went down 29% year over year due to declines in Aerospace Structures associated with planned reductions from the company’s portfolio transformation and the COVID-19 pandemic.
Triumph Group, Inc. Price, Consensus and EPS Surprise
In first-quarter fiscal 2021, the company generated adjusted operating income of $15.4 million, which declined 62.9% from the year-ago quarter’s figure. Adjusted operating margin of 3.1% contracted 260 basis points from 5.7% in the first-quarter of fiscal 2020.
Interest expenses and other amounted to $35 million, up from $27.5 million in the prior-year quarter.
Backlog came in at $2.70 billion, down year over year and on a sequential basis due to sunsetting programs and recent production rate reductions.
Segmental Performance
Aerospace Structures: Segment sales totaled $257.9 million, down 38.5% from $419.2 million in the year-ago quarter. The segment incurred operating loss of $256.1 million, reflecting a significant deterioration from the year-ago period.
Systems & Support: Segment sales declined 24% year over year to $257.9 million. Operating income was $25.4 million, reflecting deterioration from the year-ago quarter’s operating income of $44 million.
Financial Position
As of Jun 30, 2020, Triumph Group’s cash and cash equivalents totaled $30.9 million compared with $53.6 millionas of Dec 31, 2019.
Its long-term debt (excluding current portion) amounted to $1.56 billion as of Jun 30, 2020, compared with $1.40 billion as of Dec 31, 2019.
Net cash used in operating activities in the first quarter of fiscal 2021 was $197.5 million compared tonet cash generated worth $5 million a year ago.
The company’s capital expenditures were $7.7 million in the fiscal first quarter compared with $7.1 million in the year-earlier quarter.
Guidance
Triumph Group provided financial guidance for fiscal 2021. The company expects to generate net sales of $1.8-$1.9 billion. The Zacks Consensus Estimate for revenues of $1.99 billion lies above the company provided guidance.
Zacks Rank
Triumph Group currently carries a Zacks Rank #4 (Sell).
Teledyne Technologies (TDY - Free Report) reported second-quarter 2020 adjusted earnings of $2.43 per share, which surpassed the Zacks Consensus Estimate of $2.01 by 20.9%.
Lockheed Martin (LMT - Free Report) reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2020 adjusted earnings of 8 cents per share, which missed the Zacks Consensus Estimate of 20 cents by 60%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Triumph Group (TGI) Q1 Earnings Lag Estimates, Sales Fall Y/Y
Triumph Group Inc.’s (TGI - Free Report) first-quarter fiscal 2021 (ended Jun 30, 2020) adjusted loss was 19 cents per share, wider than the Zacks Consensus Estimate of a loss of 17 cents. The bottom line also deteriorated from earnings of 46 cents recorded in the prior-year quarter.
Including one-time adjustments, the company incurred GAAP loss of $5.35 per share in the fiscal first quarter against earnings of 36 centsreported in the year-ago quarter.
Reduced sales and operating income in the fiscal first quarter resulted in the deterioration in the bottom-line figure.
Total Sales
Net sales in the quarter under review came in at $495.1 million, outpacing the Zacks Consensus Estimate of $463 million by 7%. However, the top line slumped 32.2% on a year-over-year basis.
After taking divestitures into account, organic sales in the quarter went down 29% year over year due to declines in Aerospace Structures associated with planned reductions from the company’s portfolio transformation and the COVID-19 pandemic.
Triumph Group, Inc. Price, Consensus and EPS Surprise
Triumph Group, Inc. price-consensus-eps-surprise-chart | Triumph Group, Inc. Quote
Operational Highlights
In first-quarter fiscal 2021, the company generated adjusted operating income of $15.4 million, which declined 62.9% from the year-ago quarter’s figure. Adjusted operating margin of 3.1% contracted 260 basis points from 5.7% in the first-quarter of fiscal 2020.
Interest expenses and other amounted to $35 million, up from $27.5 million in the prior-year quarter.
Backlog came in at $2.70 billion, down year over year and on a sequential basis due to sunsetting programs and recent production rate reductions.
Segmental Performance
Aerospace Structures: Segment sales totaled $257.9 million, down 38.5% from $419.2 million in the year-ago quarter. The segment incurred operating loss of $256.1 million, reflecting a significant deterioration from the year-ago period.
Systems & Support: Segment sales declined 24% year over year to $257.9 million. Operating income was $25.4 million, reflecting deterioration from the year-ago quarter’s operating income of $44 million.
Financial Position
As of Jun 30, 2020, Triumph Group’s cash and cash equivalents totaled $30.9 million compared with $53.6 millionas of Dec 31, 2019.
Its long-term debt (excluding current portion) amounted to $1.56 billion as of Jun 30, 2020, compared with $1.40 billion as of Dec 31, 2019.
Net cash used in operating activities in the first quarter of fiscal 2021 was $197.5 million compared tonet cash generated worth $5 million a year ago.
The company’s capital expenditures were $7.7 million in the fiscal first quarter compared with $7.1 million in the year-earlier quarter.
Guidance
Triumph Group provided financial guidance for fiscal 2021. The company expects to generate net sales of $1.8-$1.9 billion. The Zacks Consensus Estimate for revenues of $1.99 billion lies above the company provided guidance.
Zacks Rank
Triumph Group currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Teledyne Technologies (TDY - Free Report) reported second-quarter 2020 adjusted earnings of $2.43 per share, which surpassed the Zacks Consensus Estimate of $2.01 by 20.9%.
Lockheed Martin (LMT - Free Report) reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2020 adjusted earnings of 8 cents per share, which missed the Zacks Consensus Estimate of 20 cents by 60%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>