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TriMas Bets on Favorable Markets, New Products & Cost Control

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On Nov 22, we issued an updated research report on TriMas Corporation (TRS - Free Report) . The company will gain from robust-end market demand, focus in improving its cost structure and momentum in its segments. Further, efforts to improve operating efficiency under the TriMas Business Mode and strong pipeline of both product and process innovation will also fuel growth.
Favorable Markets to Aid 2018 Results
Backed by year-to-date upbeat performance, TriMas raised full-year 2018 organic sales growth estimate to around 6% year over year from the previous guidance of around 5%. It also hiked earnings per share guidance to $1.72-$1.78 from the earlier projection of $1.65-$1.75. Mid-point of the guidance reflects year-over-year increase of approximately 25%. The Zacks Consensus Estimate for fiscal 2018 for earnings is pegged at $1.73, reflecting year-over-year growth of 24% while revenues are at $870 million, projecting year-over-year improvement of 6%.
General industrial activity levels have improved, particularly in the United States, and this bodes well for TriMas. The company is well positioned to take advantage of the incremental volume opportunities and continues to capitalize on its internal sales growth programs. 
Segments Poised Well for Growth
The Specialty Products segment’s performance will be aided by improving energy and industrial end-markets. Management also continues to assess the cost structure of the segment. The packaging segment, the company’s most profitable business, should benefit from new products and realignment of the segment’s manufacturing footprint. The business continues to develop specialty dispensing and closure applications for higher-growth global markets (industrial, food and beverage and heath, beauty and home care). The company is developing its global marketing and salesforce to better align with end-markets and customers. Further, the segment continues to witness robust quoting activity within its existing and new product lines. In the Aerospace segment, the company is witnessing solid order intake and order activity.
TriMas Business Model, Products Key Catalysts to Growth 
TriMas continues to focus on leveraging the TriMas Business Model in order to drive the company’s performance. Its innovative solutions through product, process or service, and extensive resources will help strengthen business. Consequently, by refocusing on these efforts under the business model, TriMas will continue to realize synergies. This in turn will aid the results.
The company also has a robust pipeline of both product and process innovation that will support long-term growth and position its businesses to capitalize on market opportunities along with minimizing market disruptions.
Share Price Performance
Shares of TriMas appreciated around 10% over the past year, against the industry’s decline of 29%.
Zacks Rank & Key Picks
TriMas carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Other top-ranked stocks in the same sector include Enersys (ENS - Free Report) , Flowserve Corporation (FLS - Free Report) and Mobile Mini, Inc. (MINI - Free Report) . While Enersys flaunts a Zacks Rank #1, Flowserve and Mobile Mini carry a Zacks Rank #2.
Enersys has a long-term earnings growth rate of 10%. The company’s shares have gained 23% over the past year.
Flowserve has a long-term earnings growth rate of 17.3%. The stock has climbed 17% in a year’s time.
Mobile Mini has a long-term earnings growth rate of 14%. Its shares have rallied 12% in the past year.
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