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Triumph Group Inc.’s (TGI - Free Report) adjusted earnings from continuing operations in third-quarter fiscal 2017 (ended Dec 31, 2016) came in at $1.01 per share, missing the Zacks Consensus Estimate of $1.24 by 18.6%. Reported earnings also declined 37.6% from $1.39 per share a year ago.
In the reported quarter, net sales were $844.9 million, beating the Zacks Consensus Estimate of $840 million by 0.6%. The top line, however, declined 7.6% year over year.
Moreover, organic sales were down 7% primarily due to rate reductions on key Aerospace structures programs, changes in model mix, reduced demand in commercial rotorcraft and foreign exchange rates.
Operational Highlights
In third-quarter fiscal 2017, the company’s operating income was $55.2 million, as against a loss of $126.3 million in the year-ago quarter.
Quarterly Segment Performance
Aerospace Structures: Segment sales were $304.2 million, down from $346.6 million in the year-ago quarter. Operating income was $23.9 million, as against a loss of $210.9 million in the year-ago quarter.
Integrated Systems: Segment sales dipped 5.8% year over year to $256.1 million. Operating income was $51.6 million, down from the year-ago level of $52.3 million.
Precision Components: Segment revenues declined 9.6% to $226.3 million in the reported quarter. The segment reported an operating income of $2.9 million, compared with $24.1 million in the prior-year quarter.
Product Support: Segment sales improved 11.7% year over year to $87.3 million, driven entirely by organic sales. Operating income was $14.7 million, up from the year-ago level of $12.4 million.
Financial Position
As of Dec 31, 2016, Triumph’s cash balance was $35.5 million, compared with $21 million as of Mar 31, 2016. As of Dec 31, 2016, long-term debt (excluding current portion) was $1,470.6 million, compared with $1,374.9 million as of Mar 31, 2016.
Cash used for operations during the quarter was $41.4 million. The company spent $9.2 million as capital expenditure in the quarter.
Guidance
For fiscal 2017, the company continues to expect revenues at around $3.5 billion to $3.6 billion and earnings per share in the range of $3.15–$3.45.
Triumph expects free cash flow in the range of $190–$210 million, up from the previous range of $100–$120 million. The company believes that it will generate sufficient amount to fund restructuring initiatives through fiscal 2017.
Triumph Group, Inc. Price, Consensus and EPS Surprise
AAR Corporation (AIR - Free Report) reported second-quarter fiscal 2017 earnings of 35 cents per share, up 34.6% from the year-ago figure of 26 cents.
Rockwell Collins Inc. reported financial results for first-quarter fiscal 2017 ended Dec 31, 2016. The company’s adjusted earnings per share of $1.20 surpassed the Zacks Consensus Estimate of $1.15 by 4.3%. Reported earnings, however, slipped 0.8% from $1.21 earned a year ago.
Raytheon Company reported fourth-quarter 2016 adjusted earnings from continuing operations of $1.88 per share, beating the Zacks Consensus Estimate of $1.86 by 1.1%.
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Triumph (TGI) Q3 Earnings Miss, Revenues Beat Estimates
Triumph Group Inc.’s (TGI - Free Report) adjusted earnings from continuing operations in third-quarter fiscal 2017 (ended Dec 31, 2016) came in at $1.01 per share, missing the Zacks Consensus Estimate of $1.24 by 18.6%. Reported earnings also declined 37.6% from $1.39 per share a year ago.
Total Revenue
In the reported quarter, net sales were $844.9 million, beating the Zacks Consensus Estimate of $840 million by 0.6%. The top line, however, declined 7.6% year over year.
Moreover, organic sales were down 7% primarily due to rate reductions on key Aerospace structures programs, changes in model mix, reduced demand in commercial rotorcraft and foreign exchange rates.
Operational Highlights
In third-quarter fiscal 2017, the company’s operating income was $55.2 million, as against a loss of $126.3 million in the year-ago quarter.
Quarterly Segment Performance
Aerospace Structures: Segment sales were $304.2 million, down from $346.6 million in the year-ago quarter. Operating income was $23.9 million, as against a loss of $210.9 million in the year-ago quarter.
Integrated Systems: Segment sales dipped 5.8% year over year to $256.1 million. Operating income was $51.6 million, down from the year-ago level of $52.3 million.
Precision Components: Segment revenues declined 9.6% to $226.3 million in the reported quarter. The segment reported an operating income of $2.9 million, compared with $24.1 million in the prior-year quarter.
Product Support: Segment sales improved 11.7% year over year to $87.3 million, driven entirely by organic sales. Operating income was $14.7 million, up from the year-ago level of $12.4 million.
Financial Position
As of Dec 31, 2016, Triumph’s cash balance was $35.5 million, compared with $21 million as of Mar 31, 2016. As of Dec 31, 2016, long-term debt (excluding current portion) was $1,470.6 million, compared with $1,374.9 million as of Mar 31, 2016.
Cash used for operations during the quarter was $41.4 million. The company spent $9.2 million as capital expenditure in the quarter.
Guidance
For fiscal 2017, the company continues to expect revenues at around $3.5 billion to $3.6 billion and earnings per share in the range of $3.15–$3.45.
Triumph expects free cash flow in the range of $190–$210 million, up from the previous range of $100–$120 million. The company believes that it will generate sufficient amount to fund restructuring initiatives through fiscal 2017.
Triumph Group, Inc. Price, Consensus and EPS Surprise
Triumph Group, Inc. Price, Consensus and EPS Surprise | Triumph Group, Inc. Quote
Peer Releases
AAR Corporation (AIR - Free Report) reported second-quarter fiscal 2017 earnings of 35 cents per share, up 34.6% from the year-ago figure of 26 cents.
Rockwell Collins Inc. reported financial results for first-quarter fiscal 2017 ended Dec 31, 2016. The company’s adjusted earnings per share of $1.20 surpassed the Zacks Consensus Estimate of $1.15 by 4.3%. Reported earnings, however, slipped 0.8% from $1.21 earned a year ago.
Raytheon Company reported fourth-quarter 2016 adjusted earnings from continuing operations of $1.88 per share, beating the Zacks Consensus Estimate of $1.86 by 1.1%.
Zacks Rank
Currently, Triumph carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>