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Triumph Group (TGI) Q3 Earnings Top Estimates, Sales Fall Y/Y
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Triumph Group Inc.’s (TGI - Free Report) adjusted earnings in third-quarter fiscal 2021 (ended Dec 31, 2020) were 9 cents per share versus the Zacks Consensus Estimate of a loss of 7 cents. The bottom line however declined 87% from 69 cents recorded in the prior-year quarter.
Including one-time adjustments, the company incurred GAAP loss of $1.30 per share in the fiscal third quarter compared with loss of 26 cents incurred a year ago.
Total Sales
Net sales in the quarter under review came in at $426 million, missing the Zacks Consensus Estimate of $445 million by 4.2%. Moreover, the top line declined 39.5% on a year-over-year basis.
After taking divestitures into account, organic sales in the quarter went down 32% year over year because of planned reductions in sunsetting and transitioned programs, impact of the COVID-19 pandemic and resulting production rate decreases, primarily in commercial programs.
Operational Highlights
In third-quarter fiscal 2021, the company generated adjusted operating income of $37.1 million, which declined 40.5% from the year-ago quarter’s figure. Adjusted operating margin of 8.9% declined 20 basis points from 9.1% in the third quarter of fiscal 2020.
Interest expenses and other amounted to $44.9 million, up 35.2% from $33.2 million in the prior-year quarter.
Backlog came in at $2.28 billion, down year over year and on a sequential basis due to divestitures, sunsetting programs and production rate reductions.
Segmental Performance
Aerospace Structures: Segment sales totaled $162.4 million, down 56% from $369 million in the year-ago quarter. The segment reported operating income of $18 million during third-quarter fiscal 2021.
Systems & Support: Segment sales declined 22.1% year over year to $264.1 million. Operating income was $57.4 million during third-quarter fiscal 2021.
Triumph Group, Inc. Price, Consensus and EPS Surprise
As of Dec 31, 2020, Triumph Group’s cash and cash equivalents totaled $477.3 million, compared with $485.5 million as of Mar 31, 2020.
Its long-term debt (excluding current portion) amounted to $2.13 billion as of Dec 31, 2020, compared with $1.80 billion as on Mar 31, 2020.
Net cash used in operating activities in the first nine months of fiscal 2021 was $195.9 million against net cash generated worth $39.3 million a year ago.
The company’s capital expenditures were $19 million in the first nine months of fiscal 2021 compared with $27.3 million in the prior-year quarter.
Guidance
Triumph Group reaffirmed its financial guidance for fiscal 2021. The company continues to expect net sales of $1.8-$1.9 billion. The Zacks Consensus Estimate for revenues of $1.85 billion lies at the mid-point of the guidance.
Lockheed Martin Corp. (LMT - Free Report) reported fourth-quarter 2020 earnings from continuing operations of $6.38 per share, in line with the Zacks Consensus Estimate.
Hexcel Corporation (HXL - Free Report) reported fourth-quarter 2020 loss of 18 cents per share, in line with the Zacks Consensus Estimate.
General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2020 earnings from continuing operations of $3.49 per share, which missed the Zacks Consensus Estimate of $3.55 by 1.7%.
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Triumph Group (TGI) Q3 Earnings Top Estimates, Sales Fall Y/Y
Triumph Group Inc.’s (TGI - Free Report) adjusted earnings in third-quarter fiscal 2021 (ended Dec 31, 2020) were 9 cents per share versus the Zacks Consensus Estimate of a loss of 7 cents. The bottom line however declined 87% from 69 cents recorded in the prior-year quarter.
Including one-time adjustments, the company incurred GAAP loss of $1.30 per share in the fiscal third quarter compared with loss of 26 cents incurred a year ago.
Total Sales
Net sales in the quarter under review came in at $426 million, missing the Zacks Consensus Estimate of $445 million by 4.2%. Moreover, the top line declined 39.5% on a year-over-year basis.
After taking divestitures into account, organic sales in the quarter went down 32% year over year because of planned reductions in sunsetting and transitioned programs, impact of the COVID-19 pandemic and resulting production rate decreases, primarily in commercial programs.
Operational Highlights
In third-quarter fiscal 2021, the company generated adjusted operating income of $37.1 million, which declined 40.5% from the year-ago quarter’s figure. Adjusted operating margin of 8.9% declined 20 basis points from 9.1% in the third quarter of fiscal 2020.
Interest expenses and other amounted to $44.9 million, up 35.2% from $33.2 million in the prior-year quarter.
Backlog came in at $2.28 billion, down year over year and on a sequential basis due to divestitures, sunsetting programs and production rate reductions.
Segmental Performance
Aerospace Structures: Segment sales totaled $162.4 million, down 56% from $369 million in the year-ago quarter. The segment reported operating income of $18 million during third-quarter fiscal 2021.
Systems & Support: Segment sales declined 22.1% year over year to $264.1 million. Operating income was $57.4 million during third-quarter fiscal 2021.
Triumph Group, Inc. Price, Consensus and EPS Surprise
Triumph Group, Inc. price-consensus-eps-surprise-chart | Triumph Group, Inc. Quote
Financial Position
As of Dec 31, 2020, Triumph Group’s cash and cash equivalents totaled $477.3 million, compared with $485.5 million as of Mar 31, 2020.
Its long-term debt (excluding current portion) amounted to $2.13 billion as of Dec 31, 2020, compared with $1.80 billion as on Mar 31, 2020.
Net cash used in operating activities in the first nine months of fiscal 2021 was $195.9 million against net cash generated worth $39.3 million a year ago.
The company’s capital expenditures were $19 million in the first nine months of fiscal 2021 compared with $27.3 million in the prior-year quarter.
Guidance
Triumph Group reaffirmed its financial guidance for fiscal 2021. The company continues to expect net sales of $1.8-$1.9 billion. The Zacks Consensus Estimate for revenues of $1.85 billion lies at the mid-point of the guidance.
Zacks Rank
Triumph Group currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Lockheed Martin Corp. (LMT - Free Report) reported fourth-quarter 2020 earnings from continuing operations of $6.38 per share, in line with the Zacks Consensus Estimate.
Hexcel Corporation (HXL - Free Report) reported fourth-quarter 2020 loss of 18 cents per share, in line with the Zacks Consensus Estimate.
General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2020 earnings from continuing operations of $3.49 per share, which missed the Zacks Consensus Estimate of $3.55 by 1.7%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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