Triumph Group (TGI) Q2 Earnings Meet Estimates, Sales Rise Y/Y
Triumph Group, Inc. TGI reported second-quarter fiscal 2024 (ended Sep 30, 2023) adjusted earnings of a cent per share, in line with the Zacks Consensus Estimate. The bottom line declined from earnings of 7 cents reported in the prior-year quarter.
Including one-time adjustments, TGI reported a GAAP loss of 2 cents per share in the second quarter of fiscal 2024 against earnings of $1.63 in the prior-year quarter.
Total Sales
Triumph Group’s net sales in the quarter under review were $354.1 million, which beat the Zacks Consensus Estimate of $335 million by 5.7%. The top line improved 15.1% from $307.6 million in the year-ago quarter.
Excluding divestitures and exited programs, organic sales in the quarter were up 16% year over year. The rise was driven by increases in commercial original equipment manufacturer (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 second quarter of fiscal 2024, Triumph Group generated an adjusted operating income of $37.1 million, which increased 22.1% from the year-ago reported figure.
Interest expenses and others amounted to $35.9 million, up 10.5% from the prior-year quarter.
Triumph Group’s backlog was $1.82 billion, up 15% from the prior fiscal year-end, primarily on commercial OEM platforms.
Segmental Performance
Interiors: The segment’s sales totaled $35.3 million, up 5.6% from $33.4 million in the year-ago quarter. The segment reported an operating loss of $3.3 million in the second quarter of fiscal 2024.
Systems & Support: The segment’s sales improved 16.3% year over year to $318.8 million. The operating income was $54.6 million in the second quarter of fiscal 2024.
Financial Position
As of Sep 30, 2023, TGI’s cash and cash equivalents totaled $169.9 million compared with $227.4 million as of Mar 31, 2023.
Its long-term debt (excluding the current portion) amounted to $1.66 billion as of Sep 30, 2023, down from $1.69 billion as of Mar 31, 2023.
The net cash outflow from operating activities as of Sep 30, 2023 was $95.9 million compared with a net cash outflow of $112.4 million in the year-ago period.
Triumph Group’s capital expenditures were $11 million as of Sep 30, 2023 compared with $7.2 million in the prior year.
Guidance
Triumph Group updated its financial guidance for fiscal 2024. It now expects to generate net sales in the band of $1.43-$1.47 billion, up from the previous range of $1.39-$1.43 billion. The Zacks Consensus Estimate for revenues is pegged at $1.43 billion, toward the low end of the company’s guided range.
TGI expects cash used in operations in the range of $65-$85 million in fiscal 2024. Free cash flow is anticipated in the band of $40-$55 million for fiscal 2024.
Zacks Rank
Triumph Group currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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