Triumph Group Inc.’s (TGI - Free Report) adjusted earnings from continuing operations in fourth-quarter fiscal 2018 (ended Mar 31, 2018) came in at $1.01 per share, which missed the Zacks Consensus Estimate of $1.02 by 1%. Reported earnings also declined 67.3% from $3.09 per share a year ago.
Excluding one-time adjustments, the company reported GAAP loss of $6.04 in the first-quarter, compared to the year-ago quarter’s loss of $2.57.
In the reported quarter, net sales were $896.9 million, beating the Zacks Consensus Estimate of $825 million by 8.7%. The top line, however, declined 2.5% year over year.
Organic sales in the quarter improved year over year, primarily driven by higher production deliveries on the Global Hawk/Triton, Global 7000, and G650 programs, partially offset by the completion of and production rate reductions on previously disclosed programs.
In fourth-quarter fiscal 2018, the company’s operating loss was $298.8 million, wider than the loss of $126.8 million in the year-ago quarter.
Quarterly Segment Performance
Aerospace Structures: Segment sales were $550.4 million, down 1.8% from $560.7 million in the year-ago quarter. Operating loss for the segment was $324.6 million, wider than the loss of $155.6 million in the year-ago quarter.
Integrated Systems: Segment sales dipped 2.4% year over year to $275.3 million. Operating income was $55 million, down from the year-ago level of $56 million.
Product Support: Segment sales fell 2.4% year over year to $79.1 million in the reported quarter. Operating income was $13.6 million in the fiscal fourth quarter against the year-ago quarter’s income of $12.8 million.
As of Mar 31, 2018, Triumph’s cash and cash equivalents were $35.8 million compared with $69.6 million as of Mar 31, 2017. As of Mar 31, 2018, long-term debt (excluding current portion) was $1.42 billion compared with $1.04 billion as of Mar 31, 2017.
Cash outflow from operations at the end of fiscal 2018 was $288.9 million, compared to cash inflow of $281.5 million at fiscal 2017-end. The company spent $42.1 million as capital expenditure in fiscal 2018, compared to $51.8 million spent in fiscal 2017.
Based on anticipated aircraft production rates and divestitures completed in fiscal 2018, Triumph Group projects revenues for fiscal 2019 in the range of $3.3-$3.4 billion. It expects revenues to increase in fiscal 2019 as development programs enter production and sales from continuing programs and new wins offset sunsetting programs.
On the bottom-line front, the company expects to generate adjusted earnings per share in the range of $1.50-$2.10.
Triumph Group currently carries a Zacks Rank #5 (Strong Sell).
Other Defense Releases
Huntington Ingalls Industries’ (HII - Free Report) first-quarter 2018 earnings of $3.48 per share missed the Zacks Consensus Estimate of $4.07 by 14.5%. The company carries a Zacks Rank #4 (Sell).
Spirit AeroSystems Holdings (SPR - Free Report) reported first-quarter 2018 earnings of $1.10 per share, which missed the Zacks Consensus Estimate of $1.35 by 18.5%.It carries a Zacks Rank #3 (Hold).
L3 Technologies (LLL - Free Report) posted first-quarter 2018 earnings of $2.34 per share from continuing operations, surpassing the Zacks Consensus Estimate of $1.99 by 2.2%. It carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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