Triumph Group Inc. Earnings: Higher-Than-Expected Net Income

The Cheat Sheet

Triumph Group Inc. reported net income above Wall Street’s expectations for the third quarter. Triumph Group designs, engineers, manufactures and sells products for the aviation and aerospace industries.

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Triumph Group Earnings Cheat Sheet for the Third Quarter

Results: Net income for Triumph Group Inc. rose to $65.9 million ($1.27 per share) vs. $44.6 million (88 cents per share) in the same quarter a year earlier. This marks a rise of 47.6% from the year earlier quarter.

Revenue: Rose 1.9% to $826 million from the year earlier quarter.

Actual vs. Wall St. Expectations: TGI reported adjusted net income of $1.29 per share. By that measure, the company beat the mean estimate of $1.12 per share. Analysts were expecting revenue of $834 million.

Quoting Management: Commenting on the company’s performance and its outlook for fiscal year 2012, Richard C. Ill, Triumph’s Chairman and Chief Executive Officer, said, “We continued our strong performance during the third quarter delivering increased revenue, record operating income and substantially higher operating margins in our Aerostructures Group. We continued to execute well, contain costs, and generate very strong cash flow. We expect this momentum to carry on into our fourth quarter and are confident in our ability to deliver long term organic growth and strong profitability.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 40.8% and in the first quarter, the figure rose more than fourfold.

Revenue has risen the past four quarters. Revenue increased 2.8% to $790.5 million in the second quarter. The figure rose more than twofold in the first quarter from the year earlier and climbed more than twofold in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 11 cents in the second quarter and by 15 cents in the first quarter.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to $1.28 per share from $1.26. The average estimate for the fiscal year is $4.54 per share, a rise from $4.39 ninety days ago.

Competitors to Watch: Goodrich Corporation , United Technologies Corp. , Honeywell Intl. Inc. , Spirit AeroSystems Hldgs., Inc. , HEICO Corporation , The Boeing Company , T.A.T. Technologies Ltd. , SIFCO Industries, Inc. , Esterline Tech. Corp. , and EDAC Technologies Corp. .

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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