TriMas (TRS) Q4 Earnings Surpass, Sales Matches Estimates
TriMas Corporation TRS reported fourth-quarter 2021 adjusted EPS of 56 cents, beating the Zacks Consensus Estimate of 53 cents. The bottom line increased 19% from the prior-year quarter’s levels.
Including the impact of one-time items, the company reported EPS of 30 cents compared with the year-ago quarter's 54 cents per share.
The company's revenues rose 11% year over year to $209 million, attributed to organic growth, acquisition-related sales and the impacts of customers’ stocking orders in the company’s Aerospace group and increased demand in the Specialty Products group. The top line came in line with the Zacks Consensus Estimate.
Costs & Margins
Cost of sales increased 12.6% year over year to $159.6 million in the reported quarter. Gross profit rose 6% year over year to $49 million. Gross margin was 23.6% compared with 24.7% in the prior-year quarter.
Selling, general and administrative expenses were up 14% year over year to $32 million. Adjusted operating profit increased 16% year over year to $25 million, driven by strong sales performance and margin expansion in the Aerospace and Specialty Products segment. Higher input costs, primarily in the Packaging segment, negated some of these gains. Adjusted operating margin expanded to 11.7% from the prior-year quarter’s 11.2%.
TriMas Corporation Price, Consensus and EPS Surprise
TriMas Corporation price-consensus-eps-surprise-chart | TriMas Corporation Quote
Segment Performance
Packaging: Net sales came in at $125 million compared with the year-ago quarter’s $124 million. Adjusted operating profit declined 8% year over year to $22 million in the reported quarter.
Aerospace: Net sales increased 29% year over year to $48 million in the fourth quarter. The segment reported an adjusted operating profit of $3.5 million compared with the year-ago quarter’s $0.5 million.
Specialty Products: The segment's revenues surged 41% year over year to $38 million. Adjusted operating profit climbed 56% year over year to $5.4 million.
Financial Performance
In 2021, TriMas repurchased approximately 596,084 of its outstanding common stock for $19.1 million. As of Dec 31, 2021, $142.6 million was available under its repurchase authorization. In fourth-quarter 2021, TriMas’ board approved a first-quarterly cash dividend of 4 cents per share, which was paid out in November 2021. It also declared a second quarterly cash dividend of 4 cents per share, payable on Mar 11, 2022.
TriMas generated $145 million of adjusted cash flow from operations in 2021 compared with $136 million in the prior year. The company ended the year with $129.8 million of unrestricted cash on hand. As of Dec 31, 2021, the total debt was $394 million compared with $346 million as of Dec 31, 2020.
2021 Results
TriMas reported an adjusted EPS of $2.24 in 2021 compared with $1.92 reported in the prior year. Earnings beat the Zacks Consensus Estimate of $2.22. Including one-time items, the bottom line came in at $1.32 against a loss per share of $1.83 in 2020.
Sales were up 11% year over year to $857 million. The top line missed the Zacks Consensus Estimate of $858 billion.
2022 Guidance
TriMas expects year-over-year sales growth of 8-11% for 2022. Adjusted EPS is expected to be $2.25-$2.35. It expects free cash flow to be greater than 100% of net income in 2022.
Price Performance
Shares of TriMas have declined 3.7% in the past year compared with the industry’s loss of 15.9%.
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Zacks Rank & Stocks to Consider
TriMas carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include Applied Industrial Technologies, Inc. AIT, Dover Corporation DOV and Silgan Holdings Inc. SLGN. While AIT sports a Zacks Rank #1 (Strong Buy), DOV and SLGN carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Industrial Technologies reported adjusted EPS of $1.46 in second-quarter fiscal 2022 (ended Dec 31, 2020), up 49% year on year and beating the Zacks Consensus Estimate of $1.09. AIT has a trailing four-quarter earnings surprise of 27.9%, on average.
Applied Industrial Technologies has an expected earnings growth rate of 24.8% for fiscal 2022. The Zacks Consensus Estimate for fiscal year earnings has moved up 9.4% in the past 60 days. AIT’s shares have appreciated 20.2% in a year.
Dover’s fourth-quarter 2021 adjusted EPS increased 15% year over year to $1.78, beating the Zacks Consensus Estimate of $1.66. DOV has a trailing four-quarter earnings surprise of 12.3%, on average.
Dover has an estimated earnings growth rate of around 12.7% for 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 5%. DOV’s shares have rallied around 32.1% in a year.
Silgan Holdings’ fourth-quarter 2021 adjusted EPS increased 32% year over year to a record 79 cents, beating the Zacks Consensus Estimate of 73 cents. SLGN has a trailing four-quarter earnings surprise of 3.8%, on average.
Silgan has a projected earnings growth rate of 13.5% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 3% in the past 60 days. In a year, SLGN has appreciated 11.7%.
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