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 (TRS) Up 0.1% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
It has been about a month since the last earnings report for TriMas (TRS - Free Report) . Shares have added about 0.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is TriMas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
TriMas reported fourth-quarter 2021 adjusted EPS of 56 cents, beating the Zacks Consensus Estimate of 53 cents. The bottom line increased 19% from the prior-year quarter’s levels.
Including the impact of one-time items, the company reported EPS of 30 cents compared with the year-ago quarter's 54 cents per share.
The company's revenues rose 11% year over year to $209 million, attributed to organic growth, acquisition-related sales and the impacts of customers’ stocking orders in the company’s Aerospace group and increased demand in the Specialty Products group. The top line came in line with the Zacks Consensus Estimate.
Costs & Margins
Cost of sales increased 12.6% year over year to $159.6 million in the reported quarter. Gross profit rose 6% year over year to $49 million. Gross margin was 23.6% compared with 24.7% in the prior-year quarter.
Selling, general and administrative expenses were up 14% year over year to $32 million. Adjusted operating profit increased 16% year over year to $25 million, driven by strong sales performance and margin expansion in the Aerospace and Specialty Products segment. Higher input costs, primarily in the Packaging segment, negated some of these gains. Adjusted operating margin expanded to 11.7% from the prior-year quarter’s 11.2%.
Segment Performance
Packaging: Net sales came in at $125 million compared with the year-ago quarter’s $124 million. Adjusted operating profit declined 8% year over year to $22 million in the reported quarter.
Aerospace: Net sales increased 29% year over year to $48 million in the fourth quarter. The segment reported an adjusted operating profit of $3.5 million compared with the year-ago quarter’s $0.5 million.
Specialty Products: The segment's revenues surged 41% year over year to $38 million. Adjusted operating profit climbed 56% year over year to $5.4 million.
Financial Performance
In 2021, TriMas repurchased approximately 596,084 of its outstanding common stock for $19.1 million. As of Dec 31, 2021, $142.6 million was available under its repurchase authorization. In fourth-quarter 2021, TriMas’ board approved a first-quarterly cash dividend of 4 cents per share, which was paid out in November 2021. It also declared a second quarterly cash dividend of 4 cents per share, payable on Mar 11, 2022.
TriMas generated $145 million of adjusted cash flow from operations in 2021 compared with $136 million in the prior year. The company ended the year with $129.8 million of unrestricted cash on hand. As of Dec 31, 2021, the total debt was $394 million compared with $346 million as of Dec 31, 2020.
2021 Results
TriMas reported an adjusted EPS of $2.24 in 2021 compared with $1.92 reported in the prior year. Earnings beat the Zacks Consensus Estimate of $2.22. Including one-time items, the bottom line came in at $1.32 against a loss per share of $1.83 in 2020.
Sales were up 11% year over year to $857 million. The top line missed the Zacks Consensus Estimate of $858 billion.
2022 Guidance
TriMas expects year-over-year sales growth of 8-11% for 2022. Adjusted EPS is expected to be $2.25-$2.35. It expects free cash flow to be greater than 100% of net income in 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -13.16% due to these changes.
VGM Scores
At this time, TriMas has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise TriMas has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TriMas (TRS) Up 0.1% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for TriMas (TRS - Free Report) . Shares have added about 0.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is TriMas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
TriMas Q4 Earnings Surpass, Sales Matches Estimates
TriMas reported fourth-quarter 2021 adjusted EPS of 56 cents, beating the Zacks Consensus Estimate of 53 cents. The bottom line increased 19% from the prior-year quarter’s levels.
Including the impact of one-time items, the company reported EPS of 30 cents compared with the year-ago quarter's 54 cents per share.
The company's revenues rose 11% year over year to $209 million, attributed to organic growth, acquisition-related sales and the impacts of customers’ stocking orders in the company’s Aerospace group and increased demand in the Specialty Products group. The top line came in line with the Zacks Consensus Estimate.
Costs & Margins
Cost of sales increased 12.6% year over year to $159.6 million in the reported quarter. Gross profit rose 6% year over year to $49 million. Gross margin was 23.6% compared with 24.7% in the prior-year quarter.
Selling, general and administrative expenses were up 14% year over year to $32 million. Adjusted operating profit increased 16% year over year to $25 million, driven by strong sales performance and margin expansion in the Aerospace and Specialty Products segment. Higher input costs, primarily in the Packaging segment, negated some of these gains. Adjusted operating margin expanded to 11.7% from the prior-year quarter’s 11.2%.
Segment Performance
Packaging: Net sales came in at $125 million compared with the year-ago quarter’s $124 million. Adjusted operating profit declined 8% year over year to $22 million in the reported quarter.
Aerospace: Net sales increased 29% year over year to $48 million in the fourth quarter. The segment reported an adjusted operating profit of $3.5 million compared with the year-ago quarter’s $0.5 million.
Specialty Products: The segment's revenues surged 41% year over year to $38 million. Adjusted operating profit climbed 56% year over year to $5.4 million.
Financial Performance
In 2021, TriMas repurchased approximately 596,084 of its outstanding common stock for $19.1 million. As of Dec 31, 2021, $142.6 million was available under its repurchase authorization. In fourth-quarter 2021, TriMas’ board approved a first-quarterly cash dividend of 4 cents per share, which was paid out in November 2021. It also declared a second quarterly cash dividend of 4 cents per share, payable on Mar 11, 2022.
TriMas generated $145 million of adjusted cash flow from operations in 2021 compared with $136 million in the prior year. The company ended the year with $129.8 million of unrestricted cash on hand. As of Dec 31, 2021, the total debt was $394 million compared with $346 million as of Dec 31, 2020.
2021 Results
TriMas reported an adjusted EPS of $2.24 in 2021 compared with $1.92 reported in the prior year. Earnings beat the Zacks Consensus Estimate of $2.22. Including one-time items, the bottom line came in at $1.32 against a loss per share of $1.83 in 2020.
Sales were up 11% year over year to $857 million. The top line missed the Zacks Consensus Estimate of $858 billion.
2022 Guidance
TriMas expects year-over-year sales growth of 8-11% for 2022. Adjusted EPS is expected to be $2.25-$2.35. It expects free cash flow to be greater than 100% of net income in 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -13.16% due to these changes.
VGM Scores
At this time, TriMas has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise TriMas has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.