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Triumph Group (TGI) Q3 Earnings Miss Estimates, Sales Up Y/Y
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Triumph Group, Inc. (TGI - Free Report) incurred third-quarter fiscal 2024 (ended Dec 31, 2023) adjusted loss of 16 cents per share, which missed the Zacks Consensus Estimate of earnings of 13 cents. The bottom line also deteriorated from earnings of 4 cents reported in the prior-year quarter.
Including one-time adjustments, TGI reported a GAAP loss of 15 cents per share in the third quarter of fiscal 2024 against earnings of 9 cents in the prior-year quarter.
Total Sales
Triumph Group’s net sales in the quarter under review were $285 million, which missed the Zacks Consensus Estimate of $366.3 million by 22.2%. However, the top line improved 8.9% from $261.7 million in the year-ago quarter.
Excluding divestitures and exited programs, organic sales in the quarter were up 13% year over year. The rise was driven by increased commercial original equipment manufacturer (OEM) sales.
Triumph Group, Inc. Price, Consensus and EPS Surprise
In the third quarter of fiscal 2024, Triumph Group generated an adjusted operating income of $19.8 million, which decreased 18.9% from the year-ago reported figure.
Interest expenses and others amounted to $32.4 million, up 5.4% from the prior-year quarter.
Triumph Group’s backlog was $1.87 billion, up 18% from the prior fiscal year-end, primarily driven by commercial OEM platforms.
Segmental Performance
Interiors: The segment’s sales totaled $44.1 million, up 1.1% from $43.6 million in the year-ago quarter. The segment reported an operating loss of $2.1 million in the third quarter of fiscal 2024 against operating income of $5 million in the prior-year quarter.
Systems & Support: The segment’s sales improved 10.5% year over year to $241.1 million. The operating income was $33.8 million in the third quarter of fiscal 2024, up from $31.6 million in the year-ago quarter.
Financial Position
As of Dec 31, 2023, TGI’s cash and cash equivalents totaled $162.9 million compared with $227.4 million as of Mar 31, 2023.
Its long-term debt (excluding the current portion) amounted to $1.63 billion as of Dec 31, 2023, down from $1.69 billion as of Mar 31, 2023.
The net cash outflow from operating activities as of Dec 31, 2023, was $68.3 million compared with a net cash outflow of $112.3 million a year ago.
Triumph Group’s capital expenditures were $16.3 million for the nine months ended Dec 31, 2023 compared with $12.3 million in the prior year.
Guidance
Triumph Group updated its financial guidance for fiscal 2024. It now expects to generate net sales in the band of $1.17-$1.20 billion, down from the previous range of $1.43-$1.47 billion. The Zacks Consensus Estimate for revenues is pegged at $1.45 billion, much higher than the company’s guided range.
TGI expects cash provided by 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.
Huntington Ingalls Industries’ (HII - Free Report) fourth-quarter 2023 earnings of $6.90 per share increased a solid 124.8% from $3.07 reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of $4.27 by 61.6%.
Revenues for the quarter totaled $3,177 million, which beat the Zacks Consensus Estimate of $2,758.2 million by 15.2%. The top line increased 13% from $2,812 million recorded in the year-ago quarter, driven by higher volumes from all three segments of the company.
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2023 adjusted earnings of $7.90 per share, which beat the Zacks Consensus Estimate of $7.26 by 8.8%. The bottom line also improved 1.4% from the year-ago quarter's recorded figure.
The company’s net sales were $18.87 billion, which surpassed the Zacks Consensus Estimate of $17.98 billion by 4.9%. The top line, however, decreased 0.6% from $18.99 billion reported in the year-ago quarter.
Teledyne Technologies Inc. (TDY - Free Report) reported fourth-quarter 2023 adjusted earnings of $5.44 per share, which beat the Zacks Consensus Estimate of $5.06 by 7.5%. The bottom line also improved 10.1% from $4.94 recorded in the year-ago quarter.
Total sales were $1,425 million, which missed the Zacks Consensus Estimate of $1,445.6 million by 1.4%. The top line, however, grew 0.5% from $1,418.2 million reported in the year-ago quarter.
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Triumph Group (TGI) Q3 Earnings Miss Estimates, Sales Up Y/Y
Triumph Group, Inc. (TGI - Free Report) incurred third-quarter fiscal 2024 (ended Dec 31, 2023) adjusted loss of 16 cents per share, which missed the Zacks Consensus Estimate of earnings of 13 cents. The bottom line also deteriorated from earnings of 4 cents reported in the prior-year quarter.
Including one-time adjustments, TGI reported a GAAP loss of 15 cents per share in the third quarter of fiscal 2024 against earnings of 9 cents in the prior-year quarter.
Total Sales
Triumph Group’s net sales in the quarter under review were $285 million, which missed the Zacks Consensus Estimate of $366.3 million by 22.2%. However, the top line improved 8.9% from $261.7 million in the year-ago quarter.
Excluding divestitures and exited programs, organic sales in the quarter were up 13% year over year. The rise was driven by increased commercial original equipment manufacturer (OEM) sales.
Triumph Group, Inc. Price, Consensus and EPS Surprise
Triumph Group, Inc. price-consensus-eps-surprise-chart | Triumph Group, Inc. Quote
Operational Highlights
In the third quarter of fiscal 2024, Triumph Group generated an adjusted operating income of $19.8 million, which decreased 18.9% from the year-ago reported figure.
Interest expenses and others amounted to $32.4 million, up 5.4% from the prior-year quarter.
Triumph Group’s backlog was $1.87 billion, up 18% from the prior fiscal year-end, primarily driven by commercial OEM platforms.
Segmental Performance
Interiors: The segment’s sales totaled $44.1 million, up 1.1% from $43.6 million in the year-ago quarter. The segment reported an operating loss of $2.1 million in the third quarter of fiscal 2024 against operating income of $5 million in the prior-year quarter.
Systems & Support: The segment’s sales improved 10.5% year over year to $241.1 million. The operating income was $33.8 million in the third quarter of fiscal 2024, up from $31.6 million in the year-ago quarter.
Financial Position
As of Dec 31, 2023, TGI’s cash and cash equivalents totaled $162.9 million compared with $227.4 million as of Mar 31, 2023.
Its long-term debt (excluding the current portion) amounted to $1.63 billion as of Dec 31, 2023, down from $1.69 billion as of Mar 31, 2023.
The net cash outflow from operating activities as of Dec 31, 2023, was $68.3 million compared with a net cash outflow of $112.3 million a year ago.
Triumph Group’s capital expenditures were $16.3 million for the nine months ended Dec 31, 2023 compared with $12.3 million in the prior year.
Guidance
Triumph Group updated its financial guidance for fiscal 2024. It now expects to generate net sales in the band of $1.17-$1.20 billion, down from the previous range of $1.43-$1.47 billion. The Zacks Consensus Estimate for revenues is pegged at $1.45 billion, much higher than the company’s guided range.
TGI expects cash provided by 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.
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
Huntington Ingalls Industries’ (HII - Free Report) fourth-quarter 2023 earnings of $6.90 per share increased a solid 124.8% from $3.07 reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of $4.27 by 61.6%.
Revenues for the quarter totaled $3,177 million, which beat the Zacks Consensus Estimate of $2,758.2 million by 15.2%. The top line increased 13% from $2,812 million recorded in the year-ago quarter, driven by higher volumes from all three segments of the company.
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2023 adjusted earnings of $7.90 per share, which beat the Zacks Consensus Estimate of $7.26 by 8.8%. The bottom line also improved 1.4% from the year-ago quarter's recorded figure.
The company’s net sales were $18.87 billion, which surpassed the Zacks Consensus Estimate of $17.98 billion by 4.9%. The top line, however, decreased 0.6% from $18.99 billion reported in the year-ago quarter.
Teledyne Technologies Inc. (TDY - Free Report) reported fourth-quarter 2023 adjusted earnings of $5.44 per share, which beat the Zacks Consensus Estimate of $5.06 by 7.5%. The bottom line also improved 10.1% from $4.94 recorded in the year-ago quarter.
Total sales were $1,425 million, which missed the Zacks Consensus Estimate of $1,445.6 million by 1.4%. The top line, however, grew 0.5% from $1,418.2 million reported in the year-ago quarter.