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TriMas (TRS) Earnings Miss Estimates in Q4, Revenues Rise Y/Y
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TriMas Corporation (TRS - Free Report) reported fourth-quarter 2023 adjusted earnings per share (EPS) of 37 cents, missing the Zacks Consensus Estimate of 54 cents. The bottom line decreased 40% from the prior-year quarter.
Including the impacts of one-time items, the company reported an EPS of 19 cents compared with the year-ago quarter's 45 cents.
TRS's revenues increased 3.1% year over year to $210 million, attributed to organic growth in aerospace and defense, certain packaging product lines, and acquisition-related sales, offset by lower market demand for products used in certain industrial, and oil and gas applications. The top line missed the Zacks Consensus Estimate of $246 million.
TriMas Corporation Price, Consensus and EPS Surprise
Cost of sales increased 5.5% year over year to $166 million in the reported quarter. Gross profit fell 5.3% year over year to $43 million. The gross margin was 20.6% compared with 22.4% in the prior-year quarter.
Selling, general and administrative expenses were down 18% year over year to $30 million. Adjusted operating profit decreased 48.2% year over year to $19 million. The adjusted operating margin was 9% compared with the prior-year quarter’s 17.8%.
Segment Performance
Packaging: Net sales were $114 million compared with the year-ago quarter’s $106 million. We predicted net sales to be $137 million for the quarter. Adjusted operating profit increased 6.6% year over year to $16 million in the reported quarter. The figure missed our estimate of $25 million.
Aerospace: Net sales increased 26.2% year over year to $64 million in the fourth quarter. The figure lagged our estimate of $66 million. The segment reported an adjusted operating profit of $6 million compared with the year-ago quarter’s $1 million. We also predicted the segment’s adjusted operating profit to be $6 million for the quarter.
Specialty Products: The segment's revenues decreased 32% year over year to $32 million. We predicted net sales to be $43 million for the quarter. Adjusted operating profit fell 57.4% year over year to $4 million. The figure missed our estimate of $8 million.
Financial Performance
In 2023, TriMas repurchased approximately 680,594 shares of its outstanding common stock for $77.3 million. As of Dec 31, 2023, the company had $34.9 million of cash on hand and $291.8 million of available borrowing capacity.
TriMas generated $88 million of cash flow from operations in 2023 compared with $7 million in the prior year.
2023 Results
TriMas reported an adjusted EPS of $1.74 in 2023 compared with $2.12 in the prior year. Earnings missed the Zacks Consensus Estimate of $1.89. Including one-time items, the bottom line was 97 cents compared with $1.56 in 2022.
Sales rose 1.1% year over year to $894 million. The top line missed the Zacks Consensus Estimate of $930 million.
2024 Guidance
TriMas expects year-over-year sales growth of 5-8% for 2024. Adjusted EPS is expected to be $1.95-$2.15.
Price Performance
TRS shares have lost 21.3% in the past year against the industry’s growth of 5.5%.
The Zacks Consensus Estimate for Proto Labs’ 2024 earnings is pegged at $1.62 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days and suggests year-over-year growth of 1.9%. The company has a trailing four-quarter average earnings surprise of 42.2%. PRLB shares have gained 15.7% in the past year.
The Zacks Consensus Estimate for AZZ’s fiscal 2024 earnings per share is pegged at $4.19. The consensus estimate for 2024 earnings has moved north by 2% in the past 60 days. The company has a trailing four-quarter average earnings surprise of 37.6%. AZZ shares have rallied 76.7% in the past year.
Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have been unchanged in the past 60 days. The company’s shares have gained 32.2% in the past year.
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TriMas (TRS) Earnings Miss Estimates in Q4, Revenues Rise Y/Y
TriMas Corporation (TRS - Free Report) reported fourth-quarter 2023 adjusted earnings per share (EPS) of 37 cents, missing the Zacks Consensus Estimate of 54 cents. The bottom line decreased 40% from the prior-year quarter.
Including the impacts of one-time items, the company reported an EPS of 19 cents compared with the year-ago quarter's 45 cents.
TRS's revenues increased 3.1% year over year to $210 million, attributed to organic growth in aerospace and defense, certain packaging product lines, and acquisition-related sales, offset by lower market demand for products used in certain industrial, and oil and gas applications. The top line missed the Zacks Consensus Estimate of $246 million.
TriMas Corporation Price, Consensus and EPS Surprise
TriMas Corporation price-consensus-eps-surprise-chart | TriMas Corporation Quote
Costs & Margins
Cost of sales increased 5.5% year over year to $166 million in the reported quarter. Gross profit fell 5.3% year over year to $43 million. The gross margin was 20.6% compared with 22.4% in the prior-year quarter.
Selling, general and administrative expenses were down 18% year over year to $30 million. Adjusted operating profit decreased 48.2% year over year to $19 million. The adjusted operating margin was 9% compared with the prior-year quarter’s 17.8%.
Segment Performance
Packaging: Net sales were $114 million compared with the year-ago quarter’s $106 million. We predicted net sales to be $137 million for the quarter. Adjusted operating profit increased 6.6% year over year to $16 million in the reported quarter. The figure missed our estimate of $25 million.
Aerospace: Net sales increased 26.2% year over year to $64 million in the fourth quarter. The figure lagged our estimate of $66 million. The segment reported an adjusted operating profit of $6 million compared with the year-ago quarter’s $1 million. We also predicted the segment’s adjusted operating profit to be $6 million for the quarter.
Specialty Products: The segment's revenues decreased 32% year over year to $32 million. We predicted net sales to be $43 million for the quarter. Adjusted operating profit fell 57.4% year over year to $4 million. The figure missed our estimate of $8 million.
Financial Performance
In 2023, TriMas repurchased approximately 680,594 shares of its outstanding common stock for $77.3 million. As of Dec 31, 2023, the company had $34.9 million of cash on hand and $291.8 million of available borrowing capacity.
TriMas generated $88 million of cash flow from operations in 2023 compared with $7 million in the prior year.
2023 Results
TriMas reported an adjusted EPS of $1.74 in 2023 compared with $2.12 in the prior year. Earnings missed the Zacks Consensus Estimate of $1.89. Including one-time items, the bottom line was 97 cents compared with $1.56 in 2022.
Sales rose 1.1% year over year to $894 million. The top line missed the Zacks Consensus Estimate of $930 million.
2024 Guidance
TriMas expects year-over-year sales growth of 5-8% for 2024. Adjusted EPS is expected to be $1.95-$2.15.
Price Performance
TRS shares have lost 21.3% in the past year against the industry’s growth of 5.5%.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
TriMas carries a Zacks Rank #2 (Buy)
Some other top-ranked stocks from the Industrial Products sector are Proto Labs, Inc. (PRLB - Free Report) , AZZ Inc. (AZZ - Free Report) and Applied Industrial Technologies (AIT - Free Report) . PRLB currently sports a Zacks Rank #1 (Strong Buy), and AZZ and AIT carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Proto Labs’ 2024 earnings is pegged at $1.62 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days and suggests year-over-year growth of 1.9%. The company has a trailing four-quarter average earnings surprise of 42.2%. PRLB shares have gained 15.7% in the past year.
The Zacks Consensus Estimate for AZZ’s fiscal 2024 earnings per share is pegged at $4.19. The consensus estimate for 2024 earnings has moved north by 2% in the past 60 days. The company has a trailing four-quarter average earnings surprise of 37.6%. AZZ shares have rallied 76.7% in the past year.
Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have been unchanged in the past 60 days. The company’s shares have gained 32.2% in the past year.