Triumph Group Inc. Earnings Cheat Sheet: Fifth Straight Quarter of Double-Digit Growth

Wall St. Cheat Sheet

Triumph Group Inc. reported net income above Wall Street’s expectations for the second 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 Second Quarter

Results: Net income for Triumph Group Inc. rose to $58.5 million ($1.13 per share) vs. $41.5 million (83 cents per share) in the same quarter a year earlier. This marks a rise of 40.8% from the year earlier quarter.

Revenue: Rose 2.8% to $790.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: TGI reported adjusted net income of $1.15 per share. By that measure, the company beat the mean estimate of $1.04 per share. It fell short of the average revenue estimate of $840.5 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, “This was another strong quarter for Triumph, driven by significant operating income growth and a 250 basis point expansion in year over year operating margin. We are particularly proud of the strong operating margins we generated in our Aerospace Systems segment as well as our Aerostructures segment, both of which were a result of good execution. Our Aerostructures segment margins also benefited from the synergies we realized from the Vought acquisition.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose more than fourfold and in the fourth quarter of the last fiscal year, the figure rose more than twofold.

Revenue has risen the past four quarters. Revenue increased more than twofold to $845.1 million in the first quarter. The figure rose more than twofold in the fourth quarter of the last fiscal year from the year earlier and climbed more than twofold in the third quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of $1 versus a mean estimate of net income of 85 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the third quarter has fallen from $1.11 per share to $1.10, indicating that analysts are growing pessisimistic about the company’s performance next quarter. Over the past three months, the average estimate for the fiscal year has climbed from $4.26 per to share to $4.39.

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. .

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

 

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