Back to top

Analyst Blog

Based in Wayne, Pennsylvania, Triumph Group, Inc. (TGI - Analyst Report) recently issued a public offering of 4,666,116 shares of its common stock. The company is likely to close and settle the offering on June 12, 2012.

The Carlyle Group’s investment funds and units will be selling all their interest in Triumph Group via this public offering. Sole underwriter to this offering is Credit Suisse Securities (USA) LLC.

Of late, the company reported encouraging results for the fourth quarter and fiscal 2012 with $1.57 per diluted share, up from $1.07 in the year-ago quarter and a 3% y/y rise in net sales. The improved results were driven by significant operating income growth and operating margin expansion generated in the company’s Aerospace Systems segment as well as Aerostructures segment with organic growth reaching 3%.

Triumph Group bears a favorable outlook for fiscal 2013, expecting to boost current production rates and anticipating earnings per share from continuing operations to be within the range of $5.45 to $5.55, excluding integration costs. Moreover, strong backlog during the fourth quarter of 2012 coupled with a solid balance sheet looks impressive for the company’s upcoming financial year.

The improving air transport industry indicates a promising demand scenario for the company’s products, equipment and methods of repair and overhaul services; thereby improving its results going forward. However, it faces stiff competition from its peers, such as Hexcel Corp. (HXL - Snapshot Report), Rolls Royce Holdings plc (RYCEY) and AAR Corp. (AIR - Analyst Report).

We currently maintain a long-term ‘Neutral’ recommendation on the stock. Triumph Group holds a Zacks #2 Rank, which translates into a short-term ‘Buy’ rating (1-3 months).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%