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Triumph Group (TGI) Beats on Q3 Earnings, Misses Revenues
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Triumph Group Inc.’s (TGI - Free Report) adjusted earnings from continuing operations in third-quarter fiscal 2018 (ended Dec 31, 2017) came in at 76 cents per share, reflecting a decline of 24.8% from $1.01 a year ago. The bottom line surpassed the Zacks Consensus Estimate of 68 cents by 11.8%.
The company reported GAAP loss of $2.29 per share, against the prior-year quarter’s earnings of 59 cents. The reported loss included 45 cents of provisional tax-related benefit due to the enactment of the Tax Cuts and Jobs Act of 2017.
Total Revenues
In the reported quarter, net sales were $775.2 million, lagging the Zacks Consensus Estimate of $776 million by 0.1%. The top line also declined 8.2% year over year.
Organic sales in the quarter were down 3%, primarily due to the completion of previously disclosed programs and production rate reductions of the same along with the timing of deliveries on certain programs.
Operational Highlights
In the fiscal third quarter, the company’s operating loss was $119.7 million, against operating income of $55.2 million in the year-ago quarter.
Interest and other expenses during the quarter was $25.83 million, up from $19.70 million in the year-ago quarter.
Quarterly Segment Performance
Aerospace Structures: Segment sales were $282.5 million, down 7.1% from $304.2 million in the year-ago quarter. Operating income was $12 million, compared with $23.9 million in the year-ago quarter.
Integrated Systems: Segment sales dropped 6.6% year over year to $239.2 million. Operating income was $42.7 million, down from the year-ago level of $51.6 million.
Precision Components: Segment revenues declined 2.9% to $219.7 million in the reported quarter. However, the segment incurred an operating loss of $186.2 million against income of $2.9 million in the prior- year quarter.
Product Support: Segment sales dropped 22.1% year over year to $68 million in the quarter. Operating income was $12.4 million in the third quarter compared with the year-ago quarter’s $14.7 million.
Triumph Group, Inc. Price, Consensus and EPS Surprise
As of Dec 31, 2017, Triumph Group’s cash and cash equivalents were $64.4 million, compared with $69.6 million as of Mar 31, 2017.
As of Dec 31, 2017, long-term debt (excluding current portion) was $1.36 billion, compared with $1.04 billion as of Mar 31, 2017.
Cash flow from operations during the reported quarter was $100.8 million, compared with outflow of $41.4 million in the prior-year quarter.
The company spent $9.16 million as capital expenditure in the third quarter, in line with the prior-year quarter.
Guidance
The company reaffirmed the net sales guidance at $3.1-$3.2 billion based on anticipated aircraft production rates and completed divestitures. Management also maintained guidance for adjusted earnings per diluted share at $2.25-$2.75. Free cash use for fiscal 2018 is currently anticipated in the range of $325-$375 million, down from the prior $400-$500 million.
The Boeing Company (BA - Free Report) reported adjusted earnings of $4.80 per share in fourth-quarter 2017, beating the Zacks Consensus Estimate of $2.91 by 64.9%.
Raytheon Company reported fourth-quarter 2017 adjusted earnings per share from continuing operations of $2.03, beating the Zacks Consensus Estimate of $2.02 by 0.5%.
Textron (TXT - Free Report) reported fourth-quarter 2017 adjusted earnings per share from continuing operations of 74 cents, which missed the Zacks Consensus Estimate of 77 cents by 4.1%.
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Triumph Group (TGI) Beats on Q3 Earnings, Misses Revenues
Triumph Group Inc.’s (TGI - Free Report) adjusted earnings from continuing operations in third-quarter fiscal 2018 (ended Dec 31, 2017) came in at 76 cents per share, reflecting a decline of 24.8% from $1.01 a year ago. The bottom line surpassed the Zacks Consensus Estimate of 68 cents by 11.8%.
The company reported GAAP loss of $2.29 per share, against the prior-year quarter’s earnings of 59 cents. The reported loss included 45 cents of provisional tax-related benefit due to the enactment of the Tax Cuts and Jobs Act of 2017.
Total Revenues
In the reported quarter, net sales were $775.2 million, lagging the Zacks Consensus Estimate of $776 million by 0.1%. The top line also declined 8.2% year over year.
Organic sales in the quarter were down 3%, primarily due to the completion of previously disclosed programs and production rate reductions of the same along with the timing of deliveries on certain programs.
Operational Highlights
In the fiscal third quarter, the company’s operating loss was $119.7 million, against operating income of $55.2 million in the year-ago quarter.
Interest and other expenses during the quarter was $25.83 million, up from $19.70 million in the year-ago quarter.
Quarterly Segment Performance
Aerospace Structures: Segment sales were $282.5 million, down 7.1% from $304.2 million in the year-ago quarter. Operating income was $12 million, compared with $23.9 million in the year-ago quarter.
Integrated Systems: Segment sales dropped 6.6% year over year to $239.2 million. Operating income was $42.7 million, down from the year-ago level of $51.6 million.
Precision Components: Segment revenues declined 2.9% to $219.7 million in the reported quarter. However, the segment incurred an operating loss of $186.2 million against income of $2.9 million in the prior-
year quarter.
Product Support: Segment sales dropped 22.1% year over year to $68 million in the quarter. Operating income was $12.4 million in the third quarter compared with the year-ago quarter’s $14.7 million.
Triumph Group, Inc. Price, Consensus and EPS Surprise
Triumph Group, Inc. Price, Consensus and EPS Surprise | Triumph Group, Inc. Quote
Financial Position
As of Dec 31, 2017, Triumph Group’s cash and cash equivalents were $64.4 million, compared with $69.6 million as of Mar 31, 2017.
As of Dec 31, 2017, long-term debt (excluding current portion) was $1.36 billion, compared with $1.04 billion as of Mar 31, 2017.
Cash flow from operations during the reported quarter was $100.8 million, compared with outflow of $41.4 million in the prior-year quarter.
The company spent $9.16 million as capital expenditure in the third quarter, in line with the prior-year quarter.
Guidance
The company reaffirmed the net sales guidance at $3.1-$3.2 billion based on anticipated aircraft production rates and completed divestitures. Management also maintained guidance for adjusted earnings per diluted share at $2.25-$2.75. Free cash use for fiscal 2018 is currently anticipated in the range of $325-$375 million, down from the prior $400-$500 million.
Zacks Rank
Triumph Group carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
The Boeing Company (BA - Free Report) reported adjusted earnings of $4.80 per share in fourth-quarter 2017, beating the Zacks Consensus Estimate of $2.91 by 64.9%.
Raytheon Company reported fourth-quarter 2017 adjusted earnings per share from continuing operations of $2.03, beating the Zacks Consensus Estimate of $2.02 by 0.5%.
Textron (TXT - Free Report) reported fourth-quarter 2017 adjusted earnings per share from continuing operations of 74 cents, which missed the Zacks Consensus Estimate of 77 cents by 4.1%.
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The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
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