Triumph Group (TGI) Q3 Earnings Top Estimates, EPS View Up
Triumph Group, Inc. TGI shares slipped 0.2% to reach $12.22 on Feb 2, following the company’s third-quarter fiscal 2022 results.
The company reported third-quarter fiscal 2022 (ended Dec 31, 2022) adjusted earnings of 12 cents per share, which surpassed the Zacks Consensus Estimate of 10 cents by 20%. The bottom line, however, declined 42.9% from 21 cents per share.
Including one-time adjustments, TGI reported GAAP earnings of 8 cents per share for the fiscal third quarter compared with 11 cents 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 $328.9 million, which beat the Zacks Consensus Estimate of $309 million by 6.5%. The top line also improved 3% from $319.2 million in the year-ago quarter.
Excluding divestitures and exited programs, organic sales in the quarter were up 21% year over year, driven by increases in commercial narrow-body production and commercial MRO and partial recovery of military rotorcraft volume.
Operational Highlights
In the third quarter of fiscal 2022, Triumph Group generated an adjusted operating income of $35.7 million, which increased 8.9% from the year-ago reported figure. The adjusted operating margin of 10.8% expanded 50 basis points from 10.3% in the third quarter of fiscal 2021.
Interest expenses and others amounted to $36.4 million, up 12.5% from the prior-year quarter.
Triumph Group’s backlog was $1.59 billion, up 1.3% on a sequential basis from $1.57 billion.
Segmental Performance
Aerospace Structures: The segment’s sales totaled $43.6 million, down 47.4% from $83 million in the year-ago quarter. The segment reported an operating income of $5 million for the third quarter of fiscal 2022.
Systems & Support: The segment’s sales improved 20.7% year over year to $285.3 million. The operating income was $43 million in the third quarter of fiscal 2022.
Financial Position
As of Dec 31, 2022, TGI’s cash and cash equivalents totaled $116.4 million compared with $240.9 million as of Mar 31, 2022.
Its long-term debt (excluding the current portion) amounted to $1.61 billion as of Dec 31, 2022, up from $1.59 billion as of Mar 31, 2022.
Net cash outflow from operating activities as of Dec 31, 2022 was $112.3 million compared with a net cash outflow of $170 million in the same year-ago period.
Triumph Group’s capital expenditures were $12.3 million as of Dec 31, 2022 compared with $15.8 million in the prior year.
Guidance
Triumph Group has updated its financial guidance for fiscal 2023. The company currently anticipates adjusted earnings per share (EPS) in the range of 48-68 cents, compared with the earlier outlook of 40-60 cents. The Zacks Consensus Estimate for earnings is pegged at 51 cents per share, near the mid-point of the guided range.
TGI now expects to generate net sales in the range of $1.30-$1.35 billion, up from prior guidance of $1.3 billion, in fiscal 2023. The Zacks Consensus Estimate for revenues is pegged at $1.30 billion, in line with the lower end of the company’s guided range.
The company also expects cash used in operations to be in the range of $30-$40 million in fiscal 2023.
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.
Recent Defense Releases
Lockheed Martin Corporation LMT reported fourth-quarter 2022 adjusted earnings of $7.79 per share, which surpassed the Zacks Consensus Estimate of $7.41 by 5.1%. The bottom line also improved 7.9% year over year.
In the reported quarter, net sales amounted to $19 billion, which surpassed the Zacks Consensus Estimate of $18.25 billion by 4.1%. The top line rose 7.3% from the year-ago quarter’s reported figure of $17.7 billion.
Raytheon Technologies Corporation’s RTX fourth-quarter 2022 adjusted earnings per share (EPS) of $1.27 beat the Zacks Consensus Estimate of $1.24 per share by 2.4%. Moreover, the bottom line improved 18% from the year-ago quarter’s tally.
Raytheon Technologies’ fourth-quarter sales of $18,093 million missed the Zacks Consensus Estimate of $18,196 million by 0.6%. The sales figure, however, rose 6% from $17,044 million recorded in the year-ago quarter.
General Dynamics Corporation GD reported its fourth-quarter 2022 EPS of $3.58, which beat the Zacks Consensus Estimate of $3.53 per share by 1.4%. Quarterly earnings increased 5.6% from $3.39 per share in the year-ago quarter.
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