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Triumph Group (TGI) Q1 Earnings Top Estimates, Sales Down Y/Y
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Triumph Group Inc.’s (TGI - Free Report) adjusted earnings from continuing operations in first-quarter fiscal 2020 (ended Jun 30, 2019) came in at 46 cents per share, which surpassed the Zacks Consensus Estimate of 45 cents by 2.2%. The bottom line also improved 35.3% from 34 cents per share registered in the prior-year quarter.
Including one-time adjustments, the company generated GAAP earnings of $36 cents per share against a loss of $1.54 incurred in the year-ago quarter.
Total Sales
Net sales in the quarter under review came in at $730.2 million, outpacing the Zacks Consensus Estimate of $705 million by 3.6%. However, the top line declined 12.3% on a year-over-year basis.
Organic sales in the quarter were up 5.8% year over year driven by increased volumes from engine and military rotorcraft components, aftermarket accessory services and continuing structures programs and new engineering services.
Triumph Group, Inc. Price, Consensus and EPS Surprise
In first-quarter fiscal 2020, the company generated adjusted operating income of $22.9 million compared with $17 million in the year-ago quarter.
Interest expenses and other amounted to $27.5 million compared with $25.5 million in the prior-year quarter.
Backlog was $3.7 billion, up 1% organically from the prior-year period’s figure and flat on a sequential basis.
Segmental Performance
Aerospace Structures: Segment sales totaled $419.2 million, down 21.3% from $532.4 million in the year-ago quarter. Operating income was $12.3 million, reflecting a significant improvement from operating loss of $79.6 million incurred in the same period last year.
Integrated Systems: Segment sales rose 4.6% year over year to $252.2 million. Operating income summed $34.8 million, down 1.8% from the year-ago level of $35.4 million.
Product Support: Segment sales declined 6.7% year over year to $61.8 million in the reported quarter. Operating income amounted to $9.3 million compared with the year-ago figure of $7.7 million.
Financial Position
As of Jun 30, 2019, Triumph Group’s cash and cash equivalents totaled $28.9 million compared with $92.8 million as of Mar 31, 2019. Its long-term debt (excluding current portion) amounted to $1.43 billion as of Jun 30, 2019, compared with $1.48 billion on Mar 31, 2019.
Cash flow from operating activities in the fiscal first quarter was $5 million compared to cash outflow of $65.7 million in the year-ago quarter. The company spent $8.1 million as capital expenditures in the fiscal first quarter compared with $12.2 million in the prior year.
Guidance
Triumph Group reiterated its fiscal 2020 guidance. Based on anticipated aircraft production rates and including the impacts of pending program transfers, the company continues to project revenues in the $2.8-$2.9 billion range. The Zacks Consensus Estimate for fiscal 2020 earnings is pegged at $2.86 billion, above the mid-point of the company’s projected view.
On the bottom-line front, the company still expects its adjusted earnings per share in the $2.35-$2.95 band. For fiscal 2020 earnings, the Zacks Consensus Estimate is pinned at $2.49, much below the mid-point of the company’s guided range.
Textron Inc. (TXT - Free Report) reported second-quarter 2019 earnings from continuing operations of 93 cents per share, which surpassed the Zacks Consensus Estimate of 85 cents by 9.4%. The company carries a Zacks Rank #3.
Lockheed Martin Corp. (LMT - Free Report) reported second-quarter 2019 earnings of $5 per share, which exceeded the Zacks Consensus Estimate of $4.74 by 5.5%. It carries a Zacks Rank #2 (Buy).
Hexcel Corporation (HXL - Free Report) reported second-quarter 2019 earnings of 94 cents per share, which outpaced the Zacks Consensus Estimate of 88 cents by 6.8%. The company carries a Zacks Rank of 2.
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Triumph Group (TGI) Q1 Earnings Top Estimates, Sales Down Y/Y
Triumph Group Inc.’s (TGI - Free Report) adjusted earnings from continuing operations in first-quarter fiscal 2020 (ended Jun 30, 2019) came in at 46 cents per share, which surpassed the Zacks Consensus Estimate of 45 cents by 2.2%. The bottom line also improved 35.3% from 34 cents per share registered in the prior-year quarter.
Including one-time adjustments, the company generated GAAP earnings of $36 cents per share against a loss of $1.54 incurred in the year-ago quarter.
Total Sales
Net sales in the quarter under review came in at $730.2 million, outpacing the Zacks Consensus Estimate of $705 million by 3.6%. However, the top line declined 12.3% on a year-over-year basis.
Organic sales in the quarter were up 5.8% year over year driven by increased volumes from engine and military rotorcraft components, aftermarket accessory services and continuing structures programs and new engineering services.
Triumph Group, Inc. Price, Consensus and EPS Surprise
Triumph Group, Inc. price-consensus-eps-surprise-chart | Triumph Group, Inc. Quote
Operational Highlights
In first-quarter fiscal 2020, the company generated adjusted operating income of $22.9 million compared with $17 million in the year-ago quarter.
Interest expenses and other amounted to $27.5 million compared with $25.5 million in the prior-year quarter.
Backlog was $3.7 billion, up 1% organically from the prior-year period’s figure and flat on a sequential basis.
Segmental Performance
Aerospace Structures: Segment sales totaled $419.2 million, down 21.3% from $532.4 million in the year-ago quarter. Operating income was $12.3 million, reflecting a significant improvement from operating loss of $79.6 million incurred in the same period last year.
Integrated Systems: Segment sales rose 4.6% year over year to $252.2 million. Operating income summed $34.8 million, down 1.8% from the year-ago level of $35.4 million.
Product Support: Segment sales declined 6.7% year over year to $61.8 million in the reported quarter. Operating income amounted to $9.3 million compared with the year-ago figure of $7.7 million.
Financial Position
As of Jun 30, 2019, Triumph Group’s cash and cash equivalents totaled $28.9 million compared with $92.8 million as of Mar 31, 2019. Its long-term debt (excluding current portion) amounted to $1.43 billion as of Jun 30, 2019, compared with $1.48 billion on Mar 31, 2019.
Cash flow from operating activities in the fiscal first quarter was $5 million compared to cash outflow of $65.7 million in the year-ago quarter. The company spent $8.1 million as capital expenditures in the fiscal first quarter compared with $12.2 million in the prior year.
Guidance
Triumph Group reiterated its fiscal 2020 guidance. Based on anticipated aircraft production rates and including the impacts of pending program transfers, the company continues to project revenues in the $2.8-$2.9 billion range. The Zacks Consensus Estimate for fiscal 2020 earnings is pegged at $2.86 billion, above the mid-point of the company’s projected view.
On the bottom-line front, the company still expects its adjusted earnings per share in the $2.35-$2.95 band. For fiscal 2020 earnings, the Zacks Consensus Estimate is pinned at $2.49, much below the mid-point of the company’s guided range.
Zacks Rank
Triumph Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Textron Inc. (TXT - Free Report) reported second-quarter 2019 earnings from continuing operations of 93 cents per share, which surpassed the Zacks Consensus Estimate of 85 cents by 9.4%. The company carries a Zacks Rank #3.
Lockheed Martin Corp. (LMT - Free Report) reported second-quarter 2019 earnings of $5 per share, which exceeded the Zacks Consensus Estimate of $4.74 by 5.5%. It carries a Zacks Rank #2 (Buy).
Hexcel Corporation (HXL - Free Report) reported second-quarter 2019 earnings of 94 cents per share, which outpaced the Zacks Consensus Estimate of 88 cents by 6.8%. The company carries a Zacks Rank of 2.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
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