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Why Is Triumph Group (TGI) Up 25.3% Since Last Earnings Report?

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A month has gone by since the last earnings report for Triumph Group (TGI - Free Report) . Shares have added about 25.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Triumph Group 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 catalysts.

Triumph Group Q2 Earnings Meet Estimates, Sales Rise Y/Y

Triumph Groupreported second-quarter fiscal 2024 (ended Sep 30, 2023) adjusted earnings of a penny per share, in line with the Zacks Consensus Estimate. The bottom line declined from earnings of 7 cents reported in the prior-year quarter.

Including one-time adjustments, TGI reported a GAAP loss of 2 cents per share in the second quarter of fiscal 2024 against earnings of $1.63 in the prior-year quarter.

Total Sales

Triumph Group’s net sales in the quarter under review were $354.1 million, which beat the Zacks Consensus Estimate of $335 million by 5.7%. The top line improved 15.1% from $307.6 million in the year-ago quarter.

Excluding divestitures and exited programs, organic sales in the quarter were up 16% year over year. The rise was driven by increases in commercial original equipment manufacturer (OEM) sales, an improvement in commercial aftermarket sales and recovering military OEM sales.

Operational Highlights

In the second quarter of fiscal 2024, Triumph Group generated an adjusted operating income of $37.1 million, which increased 22.1% from the year-ago reported figure.

Interest expenses and others amounted to $35.9 million, up 10.5% from the prior-year quarter.

Triumph Group’s backlog was $1.82 billion, up 15% from the prior fiscal year-end, primarily on commercial OEM platforms.

Segmental Performance

Interiors: The segment’s sales totaled $35.3 million, up 5.6% from $33.4 million in the year-ago quarter. The segment reported an operating loss of $3.3 million in the second quarter of fiscal 2024.

Systems & Support: The segment’s sales improved 16.3% year over year to $318.8 million. The operating income was $54.6 million in the second quarter of fiscal 2024.

Financial Position

As of Sep 30, 2023, TGI’s cash and cash equivalents totaled $169.9 million compared with $227.4 million as of Mar 31, 2023.

Its long-term debt (excluding the current portion) amounted to $1.66 billion as of Sep 30, 2023, down from $1.69 billion as of Mar 31, 2023.

The net cash outflow from operating activities as of Sep 30, 2023 was $95.9 million compared with a net cash outflow of $112.4 million in the year-ago period.

Triumph Group’s capital expenditures were $11 million as of Sep 30, 2023 compared with $7.2 million in the prior year.


Triumph Group updated its financial guidance for fiscal 2024. It now expects to generate net sales in the band of $1.43-$1.47 billion, up from the previous range of $1.39-$1.43 billion. The Zacks Consensus Estimate for revenues is pegged at $1.43 billion, toward the low end of the company’s guided range.

TGI expects cash used in operations in the range of $65-$85 million in fiscal 2024. Free cash flow is anticipated in the band of $40-$55 million for fiscal 2024.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates revision.

The consensus estimate has shifted 88.57% due to these changes.

VGM Scores

At this time, Triumph Group has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.


Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Triumph Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Triumph Group is part of the Zacks Aerospace - Defense Equipment industry. Over the past month, Curtiss-Wright (CW - Free Report) , a stock from the same industry, has gained 4.8%. The company reported its results for the quarter ended September 2023 more than a month ago.

Curtiss-Wright reported revenues of $724.33 million in the last reported quarter, representing a year-over-year change of +14.9%. EPS of $2.54 for the same period compares with $2.07 a year ago.

For the current quarter, Curtiss-Wright is expected to post earnings of $2.92 per share, indicating no change from the year-ago quarter. The Zacks Consensus Estimate has changed -1% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Curtiss-Wright. Also, the stock has a VGM Score of D.

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