TriMas Corporation (TRS - Free Report) posted adjusted earnings of 39 cents per share in third-quarter 2017, up 11.4% from 35 cents reported in the prior-year period. Earnings came in line with the Zacks Consensus Estimate.
On a reported basis, including special items, TriMas’ earnings surged 52.6% year over year to 29 cents per share.
TriMas generated revenues of $209.3 million for the quarter, outpacing the Zacks Consensus Estimate of $208.8 million. Revenues also went up 3.5% year over year.
Cost and Margins
Cost of sales rose 4.3% to $150.5 million in the quarter from $144 million in the year-ago quarter. Gross profit inched up 1.3% year over year to $58.8 million. Gross margin contracted 60 basis points (bps) to 28%.
Selling, general and administrative expenses plunged 23.7% year over year to $30.7 million. Adjusted operating profit improved 2.3% to $28.8 million from the prior-year quarter. Adjusted operating margin declined 20 bps year over year to 13.7% in the quarter.
Segment Performance
Packaging: Net sales edged down 0.9% year over year to $89.6 million. An increase in food and beverage product sales was more than offset by lower sales of beauty and home care, and industrial products in North America. Adjusted operating profit climbed 6.2% to $23.1 million.
Aerospace: Net sales increased 2.4% to $48.6 million from $47.4 million recorded in the year-earlier quarter, driven primarily by continued improved production throughput and deliveries, and solid order demand. The segment reported adjusted operating profit of $7.8 million compared to $7.9 million in the prior-year quarter.
Energy: Net sales jumped 5.8% year over year to $40.4 million, benefiting from elevated demand as a result of improved delivery performance and responding to customers' immediate needs following Hurricane Harvey. The segment reported adjusted operating profit of $1.7 million compared with $1.8 million recorded in the year-ago quarter.
Engineered Components: The segment reported revenues of $30.8 million, a 17% improvement from $31.2 million in the prior-year quarter, primarily owing to higher sales of small and mid-sized acetylene cylinders, as well as oil field-related products due to increased oil and gas well completions in the United States and Canada. Adjusted operating profit dropped 2.9% year over year to $3.3 million.
Financial Performance
TriMas had cash and cash equivalents of $24.8 million as of Sep 30, 2017, compared with $20.7 million reported at the end of 2016. The company recorded cash from operations of $72.7 million for the nine-month period ended Sep 30, 2017, compared with $46.4 million recorded in the prior-year period. As of quarter end, TriMas’ net debt was $336.6 million, down from $374.6 million as of Dec 31, 2016.
Guidance
TriMas will continue to focus on leveraging the TriMas Business Model to drive performance improvements which will result in long-term growth. The company is working diligently to mitigate near-term matters impacting its businesses and remain focused on achieving 2017 operating plan. TriMas updated its full-year earnings per share outlook to the range of $1.37-$1.43 from the prior band of $1.35-$1.45 per share. It continues to estimate that 2017 sales will increase 2-4% compared to 2016.
Share Price Performance
In the last year, TriMas has outperformed the industry with respect to price performance. The stock has gained around 46.8%, while the industry recorded growth of 33%.
Zacks Rank & Key Picks
TriMas currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same sector are Lakeland Industries, Inc. (LAKE - Free Report) , China National Materials Company Limited and Caterpillar Inc. (CAT - Free Report) . All three stocks flaunt a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lakeland Industries has an expected long-term earnings growth rate of 10%.
China National Materials has an expected long-term earnings growth rate of 20%.
Caterpillar has an expected long-term earnings growth rate of 9.5%.
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
TriMas Corporation (TRS - Free Report) posted adjusted earnings of 39 cents per share in third-quarter 2017, up 11.4% from 35 cents reported in the prior-year period. Earnings came in line with the Zacks Consensus Estimate.
On a reported basis, including special items, TriMas’ earnings surged 52.6% year over year to 29 cents per share.
TriMas generated revenues of $209.3 million for the quarter, outpacing the Zacks Consensus Estimate of $208.8 million. Revenues also went up 3.5% year over year.
Cost and Margins
Cost of sales rose 4.3% to $150.5 million in the quarter from $144 million in the year-ago quarter. Gross profit inched up 1.3% year over year to $58.8 million. Gross margin contracted 60 basis points (bps) to 28%.
Selling, general and administrative expenses plunged 23.7% year over year to $30.7 million. Adjusted operating profit improved 2.3% to $28.8 million from the prior-year quarter. Adjusted operating margin declined 20 bps year over year to 13.7% in the quarter.
Segment Performance
Packaging: Net sales edged down 0.9% year over year to $89.6 million. An increase in food and beverage product sales was more than offset by lower sales of beauty and home care, and industrial products in North America. Adjusted operating profit climbed 6.2% to $23.1 million.
Aerospace: Net sales increased 2.4% to $48.6 million from $47.4 million recorded in the year-earlier quarter, driven primarily by continued improved production throughput and deliveries, and solid order demand. The segment reported adjusted operating profit of $7.8 million compared to $7.9 million in the prior-year quarter.
Energy: Net sales jumped 5.8% year over year to $40.4 million, benefiting from elevated demand as a result of improved delivery performance and responding to customers' immediate needs following Hurricane Harvey. The segment reported adjusted operating profit of $1.7 million compared with $1.8 million recorded in the year-ago quarter.
Engineered Components: The segment reported revenues of $30.8 million, a 17% improvement from $31.2 million in the prior-year quarter, primarily owing to higher sales of small and mid-sized acetylene cylinders, as well as oil field-related products due to increased oil and gas well completions in the United States and Canada. Adjusted operating profit dropped 2.9% year over year to $3.3 million.
Financial Performance
TriMas had cash and cash equivalents of $24.8 million as of Sep 30, 2017, compared with $20.7 million reported at the end of 2016. The company recorded cash from operations of $72.7 million for the nine-month period ended Sep 30, 2017, compared with $46.4 million recorded in the prior-year period. As of quarter end, TriMas’ net debt was $336.6 million, down from $374.6 million as of Dec 31, 2016.
Guidance
TriMas will continue to focus on leveraging the TriMas Business Model to drive performance improvements which will result in long-term growth. The company is working diligently to mitigate near-term matters impacting its businesses and remain focused on achieving 2017 operating plan. TriMas updated its full-year earnings per share outlook to the range of $1.37-$1.43 from the prior band of $1.35-$1.45 per share. It continues to estimate that 2017 sales will increase 2-4% compared to 2016.
Share Price Performance
In the last year, TriMas has outperformed the industry with respect to price performance. The stock has gained around 46.8%, while the industry recorded growth of 33%.
Zacks Rank & Key Picks
TriMas currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same sector are Lakeland Industries, Inc. (LAKE - Free Report) , China National Materials Company Limited and Caterpillar Inc. (CAT - Free Report) . All three stocks flaunt a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lakeland Industries has an expected long-term earnings growth rate of 10%.
China National Materials has an expected long-term earnings growth rate of 20%.
Caterpillar has an expected long-term earnings growth rate of 9.5%.
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on CAT - FREE
Get the latest research report on TRS - FREE
Get the latest research report on LAKE - FREE