Triumph Group Inc.’s (TGI - Free Report) adjusted earnings from continuing operations in third-quarter fiscal 2017 (ended Dec 31, 2016) came in at $1.01 per share, missing the Zacks Consensus Estimate of $1.24 by 18.6%. Reported earnings also declined 37.6% from $1.39 per share a year ago.
In the reported quarter, net sales were $844.9 million, beating the Zacks Consensus Estimate of $840 million by 0.6%. The top line, however, declined 7.6% year over year.
Moreover, organic sales were down 7% primarily due to rate reductions on key Aerospace structures programs, changes in model mix, reduced demand in commercial rotorcraft and foreign exchange rates.
In third-quarter fiscal 2017, the company’s operating income was $55.2 million, as against a loss of $126.3 million in the year-ago quarter.
Quarterly Segment Performance
Aerospace Structures: Segment sales were $304.2 million, down from $346.6 million in the year-ago quarter. Operating income was $23.9 million, as against a loss of $210.9 million in the year-ago quarter.
Integrated Systems: Segment sales dipped 5.8% year over year to $256.1 million. Operating income was $51.6 million, down from the year-ago level of $52.3 million.
Precision Components: Segment revenues declined 9.6% to $226.3 million in the reported quarter. The segment reported an operating income of $2.9 million, compared with $24.1 million in the prior-year quarter.
Product Support: Segment sales improved 11.7% year over year to $87.3 million, driven entirely by organic sales. Operating income was $14.7 million, up from the year-ago level of $12.4 million.
As of Dec 31, 2016, Triumph’s cash balance was $35.5 million, compared with $21 million as of Mar 31, 2016. As of Dec 31, 2016, long-term debt (excluding current portion) was $1,470.6 million, compared with $1,374.9 million as of Mar 31, 2016.
Cash used for operations during the quarter was $41.4 million. The company spent $9.2 million as capital expenditure in the quarter.
For fiscal 2017, the company continues to expect revenues at around $3.5 billion to $3.6 billion and earnings per share in the range of $3.15–$3.45.
Triumph expects free cash flow in the range of $190–$210 million, up from the previous range of $100–$120 million. The company believes that it will generate sufficient amount to fund restructuring initiatives through fiscal 2017.
AAR Corporation (AIR - Free Report) reported second-quarter fiscal 2017 earnings of 35 cents per share, up 34.6% from the year-ago figure of 26 cents.
Rockwell Collins Inc. (COL - Free Report) reported financial results for first-quarter fiscal 2017 ended Dec 31, 2016. The company’s adjusted earnings per share of $1.20 surpassed the Zacks Consensus Estimate of $1.15 by 4.3%. Reported earnings, however, slipped 0.8% from $1.21 earned a year ago.
Raytheon Company (RTN - Free Report) reported fourth-quarter 2016 adjusted earnings from continuing operations of $1.88 per share, beating the Zacks Consensus Estimate of $1.86 by 1.1%.
Currently, Triumph carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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