Triumph Group (TGI) Beats Q1 Sales Estimates, Reports Loss
Triumph Group, Inc. TGI shares have fallen 1.3% to reach $9.23, following the company’s first-quarter fiscal 2023 results on Aug 2, 2023.
The company reported a first-quarter fiscal 2024 (ended Jun 30, 2023) adjusted loss of 10 cents per share, which came in wider than the Zacks Consensus Estimate of a loss of 5 cents per share. The bottom line declined massively from earnings of 12 cents reported in the prior-year quarter.
Including one-time adjustments, TGI reported a GAAP loss of 19 cents per share in the first quarter of fiscal 2024 compared with 16 cents in the prior-year quarter.
Total Sales
Triumph Group’s net sales in the quarter under review were $327.1 million, which beat the Zacks Consensus Estimate of $324 million by 0.9%. However, the top line declined 6.4% from $349.4 million in the year-ago quarter.
Excluding divestitures and exited programs, organic sales in the quarter were up 14% year over year. The rise was driven by increases in commercial OEM sales, an improvement in commercial aftermarket sales and recovering military OEM sales.
Triumph Group, Inc. Price, Consensus and EPS Surprise
Triumph Group, Inc. price-consensus-eps-surprise-chart | Triumph Group, Inc. Quote
Operational Highlights
In the first quarter of fiscal 2024, Triumph Group generated an adjusted operating income of $24.4 million, which decreased 25.2% from the year-ago reported figure.
Interest expenses and others amounted to $38.5 million, up 20.5% from the prior-year quarter.
Triumph Group’s backlog was $1.74 billion, up 10% from the prior fiscal year-end, primarily on commercial narrowbody platforms.
Segmental Performance
Interiors: The segment’s sales totaled $36.6 million, down 61.4% from $94.8 million in the year-ago quarter. The segment reported an operating income of $2.6 million in the first quarter of fiscal 2024.
Systems & Support: The segment’s sales improved 14.1% year over year to $290.6 million. The operating income was $45.8 million in the first quarter of fiscal 2024.
Financial Position
As of Jun 30, 2023, TGI’s cash and cash equivalents totaled $146.3 million compared with $227.4 million as of Mar 31, 2023.
Its long-term debt (excluding the current portion) amounted to $1.68 billion as of Jun 30, 2023, down from $1.69 billion as of Mar 31, 2023.
The net cash outflow from operating activities as of Jun 30, 2023 was $63.7 million compared with a net cash outflow of $93 million in the year-ago period.
Triumph Group’s capital expenditures were $6.4 million as of Jun 30, 2023 compared with $3 million in the prior year.
Guidance
Triumph Group initiated its financial guidance for fiscal 2024. It expects to generate net sales in the range of $1.39-$1.43 billion. The Zacks Consensus Estimate for revenues is pegged at $1.43 billion, toward the high end of the company’s guided range.
TGI expects cash used in operations in the range of $60-$80 million in fiscal 2024. Free cash flow is anticipated in the band of $35-$50 million for fiscal 2024.
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.
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