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.
TriMas Corporation (TRS - Free Report) posted adjusted earnings of 31 cents per share in fourth-quarter 2017, up 6.6% from 30 cents reported in the prior-year period. Earnings, however, missed the Zacks Consensus Estimate by a penny.
On a reported basis, TriMas reported a loss of 9 cents per share compared to a loss of $1.48 incurred in fourth-quarter 2016.
TriMas generated revenues of $195 million in the quarter, outpacing the Zacks Consensus Estimate of $192 million. Revenues also went up 5.2% year over year.
TriMas Corporation Price, Consensus and EPS Surprise
Cost of sales remained flat year over year at $146.1 million in the fourth quarter. Gross profit increased 24.6% year over year to $49 million. Gross margin expanded 400 basis points (bps) to 25%.
Selling, general and administrative expenses dropped 10.9% year over year to $32.9 million. Adjusted operating profit improved 22.7% to $23.4 million from the prior-year quarter. Adjusted operating margin advanced 170 bps year over year to 12% in the quarter.
Segment Performance
Packaging: Net sales increased 3% year over year to $85.3 million as a result of higher sales of industrial products in North America, and health, beauty and home care products in Asia. Adjusted operating profit declined 7% year over year to $18.9 million.
Aerospace: Net sales decreased to $42.8 million from $42.9 million recorded in the year-earlier quarter. The segment reported adjusted operating profit of $6.5 million compared to $1.3 million recorded in the prior-year quarter.
Energy: Net sales inched up 1.8% year over year to $36.7 million, primarily due to higher demand as a result of improved delivery performance, partially offset by the impact of de-emphasizing less profitable geographic regions and delay in the fall turnaround season due to the impact of Hurricane Harvey. This segment reported adjusted operating profit of $1.1 million, up 13.5% year over year.
Engineered Components: The segment reported revenues of $30.4 million, a 28% improvement from $23.8 million in the prior-year quarter, primarily driven by elevated sales of small and mid-sized cylinders, as well as oil field-related products due to increased oil and gas well completions. Adjusted operating profit climbed 18.9% year over year to $3.3 million.
2017 Performance
TriMas reported adjusted earnings per share of $1.40 for full-year 2017, up 11% year over year. Earnings came in line with the Zacks Consensus Estimate. On a reported basis, TriMas delivered earnings of 67 cents per share compared to a loss of 88 cents incurred in the prior-year quarter.
Revenues in the year climbed 3% year over year to $818 million from $794 million recorded in 2016. The figure beat the Zacks Consensus Estimate of $815 million.
Financial Performance
TriMas reported cash and cash equivalents of $27.6 million as of Dec 31, 2017, up from $20.7 million as of Dec 31, 2016. Cash flow from operations came in at $120 million in 2017 compared to $81 million recorded last year. At 2017-end, net debt was approximately $303 million, down from $360.8 million at the end of 2016.
Guidance
TriMas will continue to focus on leveraging the TriMas Business Model to drive the company’s performance in 2018. The company projects its earnings per share for 2018 in the range of $1.60-$1.75. It anticipates organic sales will increase around 3% for the year. For the current year, TriMas expects an effective tax rate of 22-24%.
Share Price Performance
In the last year, TriMas has outperformed the industry with respect to price performance. The stock has gained around 10.4%, while the industry has edged down 0.5%.
SKF AB has a long-term earnings growth rate of 6.1%. Its shares have rallied 9.4%, over the past six months.
ACCO Brands has a long-term earnings growth rate of 10%. The company’s shares have been up 20.2% during the same time frame.
Allegion has a long-term earnings growth rate of 12.3%. The stock has gained 11.9% in six months’ time.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius. Click for details >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TriMas' (TRS) Q4 Earnings Miss, Revenues Beat Estimates
TriMas Corporation (TRS - Free Report) posted adjusted earnings of 31 cents per share in fourth-quarter 2017, up 6.6% from 30 cents reported in the prior-year period. Earnings, however, missed the Zacks Consensus Estimate by a penny.
On a reported basis, TriMas reported a loss of 9 cents per share compared to a loss of $1.48 incurred in fourth-quarter 2016.
TriMas generated revenues of $195 million in the quarter, outpacing the Zacks Consensus Estimate of $192 million. Revenues also went up 5.2% year over year.
TriMas Corporation Price, Consensus and EPS Surprise
TriMas Corporation Price, Consensus and EPS Surprise | TriMas Corporation Quote
Cost and Margins
Cost of sales remained flat year over year at $146.1 million in the fourth quarter. Gross profit increased 24.6% year over year to $49 million. Gross margin expanded 400 basis points (bps) to 25%.
Selling, general and administrative expenses dropped 10.9% year over year to $32.9 million. Adjusted operating profit improved 22.7% to $23.4 million from the prior-year quarter. Adjusted operating margin advanced 170 bps year over year to 12% in the quarter.
Segment Performance
Packaging: Net sales increased 3% year over year to $85.3 million as a result of higher sales of industrial products in North America, and health, beauty and home care products in Asia. Adjusted operating profit declined 7% year over year to $18.9 million.
Aerospace: Net sales decreased to $42.8 million from $42.9 million recorded in the year-earlier quarter. The segment reported adjusted operating profit of $6.5 million compared to $1.3 million recorded in the prior-year quarter.
Energy: Net sales inched up 1.8% year over year to $36.7 million, primarily due to higher demand as a result of improved delivery performance, partially offset by the impact of de-emphasizing less profitable geographic regions and delay in the fall turnaround season due to the impact of Hurricane Harvey. This segment reported adjusted operating profit of $1.1 million, up 13.5% year over year.
Engineered Components: The segment reported revenues of $30.4 million, a 28% improvement from $23.8 million in the prior-year quarter, primarily driven by elevated sales of small and mid-sized cylinders, as well as oil field-related products due to increased oil and gas well completions. Adjusted operating profit climbed 18.9% year over year to $3.3 million.
2017 Performance
TriMas reported adjusted earnings per share of $1.40 for full-year 2017, up 11% year over year. Earnings came in line with the Zacks Consensus Estimate. On a reported basis, TriMas delivered earnings of 67 cents per share compared to a loss of 88 cents incurred in the prior-year quarter.
Revenues in the year climbed 3% year over year to $818 million from $794 million recorded in 2016. The figure beat the Zacks Consensus Estimate of $815 million.
Financial Performance
TriMas reported cash and cash equivalents of $27.6 million as of Dec 31, 2017, up from $20.7 million as of Dec 31, 2016. Cash flow from operations came in at $120 million in 2017 compared to $81 million recorded last year. At 2017-end, net debt was approximately $303 million, down from $360.8 million at the end of 2016.
Guidance
TriMas will continue to focus on leveraging the TriMas Business Model to drive the company’s performance in 2018. The company projects its earnings per share for 2018 in the range of $1.60-$1.75. It anticipates organic sales will increase around 3% for the year. For the current year, TriMas expects an effective tax rate of 22-24%.
Share Price Performance
In the last year, TriMas has outperformed the industry with respect to price performance. The stock has gained around 10.4%, while the industry has edged down 0.5%.
Zacks Rank and Other Key Picks
Currently, TriMas carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the same space include SKF AB (SKFRY - Free Report) , ACCO Brands Corporation (ACCO - Free Report) and Allegion plc (ALLE - Free Report) . All three stocks carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
SKF AB has a long-term earnings growth rate of 6.1%. Its shares have rallied 9.4%, over the past six months.
ACCO Brands has a long-term earnings growth rate of 10%. The company’s shares have been up 20.2% during the same time frame.
Allegion has a long-term earnings growth rate of 12.3%. The stock has gained 11.9% in six months’ time.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>