Triumph Group Inc.
), an aerospace giant, is set to report third quarter 2013
results on Jan 30. Last quarter it posted an 18.9% positive
surprise. Let's see how things are shaping up for this
Growth Factors This Past Quarter
Triumph experienced a strong year-over year revenue increase
in the quarter due to improvement in organic revenue across all
segments. Revenue hike was a result of an increase in the
company's customers' production rates on existing programs and
new product introduction.
The major contributors were its Aerostructures and Aftermarket
Services segments, with a huge leap in revenue. Moreover, the
company's acquisitions also played a vital role in strengthening
The company also reported improved margins for the quarter,
due to effective cost measures taken, resulting in an operating
income increase across all the segments. However, margins were
impacted marginally by the additional integration costs the
company had to bear for the acquisitions.
Based on the increased revenue across segments, operating
income growth and margin expansion, management expects the
revenue to increase in the quarters to come. Steady backlog,
stronger balance sheet and significant cash flow generation were
the added perks.
The Zacks Consensus Estimate for the third quarter stands at
$1.41. Triumph has beaten estimates in all of the last four
quarters, with a trailing four-quarter average positive surprise
of 17.2%. The biggest increase was 19.9% in the fourth quarter of
Estimate revisions have been minimal in the last 30 days, with
one upward estimate revision in the past 60 days. As a result,
the Zacks Consensus Estimate has remained unchanged for the third
quarter over the last 30 days, while increasing by 0.7% for
The lack of downward movement in estimates coupled with a
positive earnings surprise by the company in the last four
quarters, signals that the third quarter might not be too
different from the past quarters. Moreover, the stock carries a
Zacks Rank #2 (Buy).
Other Stocks to Consider
There are many aerospace companies that are likely to beat
earnings this quarter. A stock needs to have both a positive
Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
), and a Zacks Rank of #1, #2 or #3 for this to happen.Here are
some other companies you may want to consider as our model shows
they have the right combination of elements to post an earnings
beat this quarter:
Esterline Technologies Corporation
), with Earnings ESP of 18.03% and Zacks Rank #2 (Buy)
), with Earnings ESP of 2.38% and Zacks Rank #2 (Buy).
), with Earnings ESP of 2.00% and Zacks Rank #2 (Buy).
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HEXCEL CORP (HXL): Free Stock Analysis Report
TRIUMPH GRP INC (TGI): Free Stock Analysis
EXELIS INC (XLS): Free Stock Analysis Report
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