Triumph Group (TGI) Q2 Earnings Top Estimates, EPS View Up
Shares of Triumph Group, Inc. TGI rose 12.7% to reach $12.61 on Nov 10, following the company’s second-quarter fiscal 2022 results.
The company reported second-quarter fiscal 2022 (ended Sep 30, 2022) adjusted earnings of 7 cents per share in contrast to Zacks Consensus Estimate of a loss of 4 cents. The bottom line however declined 30% from 10 cents per share.
Including one-time adjustments, TGI reported GAAP earnings of $1.63 per share for the fiscal second quarter against a loss of 14 cents per share in the prior-year quarter.
Triumph Group, Inc. Price, Consensus and EPS Surprise
Triumph Group, Inc. price-consensus-eps-surprise-chart | Triumph Group, Inc. Quote
Total Sales
Triumph Group’s net sales in the quarter under review were $307.6 million, which beat the Zacks Consensus Estimate of $294 million by 4.5%. The top line, however, declined 13.9% from $357.4 million in the year-ago quarter.
Excluding divestitures and exited programs, organic sales in the quarter were up 13% year over year, primarily driven by increases in commercial narrow-body production and commercial MRO.
Operational Highlights
In the second quarter of fiscal 2022, Triumph Group generated an adjusted operating income of $30.4 million, which increased 8.7% from the year-ago reported figure. The adjusted operating margin of 9.9% expanded 210 basis points from 7.8% in the second quarter of fiscal 2021.
Interest expenses and others amounted to $32.5 million, down 5.1% from the prior-year quarter.
Triumph Group’s backlog was $1.57 billion, up 2.6% on a sequential basis from $1.53 billion.
Segmental Performance
Aerospace Structures: The segment’s sales totaled $33.4 million, down 69.2% from $108.6 million in the year-ago quarter. The segment reported an operating income of $5.9 million for the second quarter of fiscal 2022.
Systems & Support: The segment’s sales improved 10.2% year over year to $274.2 million. The operating income was $43.4 in the second quarter of fiscal 2022.
Financial Position
As of Sep 30, 2022, TGI’s cash and cash equivalents totaled $104.5 million compared with $240.9 million as of Mar 31, 2022.
Its long-term debt (excluding the current portion) amounted to $1.59 billion as of Sep 30, 2022, flat with the long-term debt as of Mar 31, 2022.
Net cash outflow from operating activities as of Sep 30, 2022 was $112.4 million compared with a net cash outflow of $185.5 million in the same period last year.
Triumph Group’s capital expenditures were $7.2 million as of Sep 30, 2022 compared with $7.5 million in the prior year.
Guidance
Triumph Group partially updated its financial guidance for fiscal 2023. The company currently anticipates adjusted earnings per share (EPS) in the range of 40-60 cents, compared with the earlier outlook of 28-48 cents. The Zacks Consensus Estimate for earnings is pegged at 69 cents per share, much higher than the guided range.
TGI still expects to generate net sales of $1.3 billion in fiscal 2023. The Zacks Consensus Estimate for revenues is pegged at $1.34, slightly higher than the company’s guided range.
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.
Recent Defense Releases
Huntington Ingalls Industries, Inc.’s HII third-quarter 2022 earnings of $3.44 per share declined 5.8% from $3.65 reported in the prior-year quarter. The bottom line also missed the Zacks Consensus Estimate of $3.53 by 2.5%.
Total revenues came in at $2,626 million, missing the Zacks Consensus Estimate of $2,685.6 million by 2.2%. However, the top line improved 12.3% from $2,338 million in the year-ago quarter.
Leidos Holdings, Inc.’s LDOS third-quarter 2022 adjusted earnings of $1.59 per share beat the Zacks Consensus Estimate of $1.56 by 1.9%. However, the bottom line declined 11.7% from $1.80 per share registered a year ago.
Leidos Holdings generated total revenues of $3,600 million in the quarter under consideration, exceeding the Zacks Consensus Estimate of $3,543.9 million by 1.6%. The top line also improved 4% year over year.
Northrop Grumman Corporation NOC reported third-quarter 2022 earnings of $5.89 per share, which missed the Zacks Consensus Estimate of $6.09 by 3.3%. The bottom line declined by 11.2% from the $6.63 reported in the year-ago quarter.
In the third quarter of 2022, Northrop Grumman reported total sales of $9 billion, which missed the Zacks Consensus Estimate of $9.15 billion by 1.6%. However, sales increased 3% from the year-ago quarter’s $8.7 billion.
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