Triumph Group Inc.
) reported strong results for the third quarter of fiscal 2013
(ended Dec 31, 2012).
Earnings per share from continuing operations, excluding $0.3
million of pre-tax integration costs and a $2.0 million pre-tax
charge (or $0.02 per share) related to early retirement
incentives to certain employees, increased 13.2% year over year
to $1.46 in the reported quarter. Results surpassed the Zacks
Consensus Estimate of $1.38 per share by 5.8%.
However, including the above mentioned pre-tax charges, income
from continuing operations was recorded at $75.2 million, or
$1.43 per share.
In the reported quarter, net sales inched up 7.8% year over year
to $890.6 million, most of which is derived from organic growth.
However, revenue missed the Zacks Consensus Estimate of $896.0
Segment wise, sales from Aerostructures surged to $676.8
million from $626.0 million in the prior-year comparable quarter.
Aerospace Systems revenue grew 5.9% year over year to $141.1
million, while Aftermarket Services increased to $74.6 million
from $68.6 million in the year-ago quarter.
Operating income in the third quarter escalated 14.2% to $134.4
million compared with $117.6 million in the year-ago quarter.
Operating margin increased to 15.1% in the reported quarter from
14.2% in the third quarter of 2012.
On a segmental basis, Aerostructures reported a rise of 13.0%
in operating income, to settle at $117.5 million. Aerospace
Systems' operating income grew 10.4% to $20.6 million. Also,
Aftermarket Services displayed a tremendous rise of 42.5% to
settle at $9.9 million.
Exiting the third quarter, Triumph's cash and cash equivalents
were approximately $33.5 million compared with $30.7 million at
the end of the previous quarter. Long-term debt (net of current
portion) was up 7.6% to $1.04 billion from $967.5 million in the
Cash provided by operations, before pension contributions, was
recorded at $97.7 million in the third quarter 2013; up from
$82.7 million in the year-ago period. Capital expenditures in the
reported quarter climbed to $28.5 million from $24.8 million in
the year-ago quarter.
Management anticipates higher revenue across segments, operating
income growth and margin expansion in the fourth quarter 2013.
Moreover, additions of assets of Embee Corporation and Goodrich
Pump and Engine Control Systems will contribute significantly to
the earnings of the company.
Based on the above positives, the company expects the revenue
to be $3.65 billion for fiscal 2013. Further, management raised
its full-year earnings guidance to approximately $6.05 per
diluted share from continuing operations, excluding integration
costs and early retirement incentives. Initially, earnings per
share were projected to be approximately $5.95, excluding
The stock currently bears a Zacks Rank #1 (Strong Buy). Other
stocks worth a look in the industry are
Alliant Techsystems Inc.
Esterline Technologies Corp.
); both holding a Zacks Rank #1 (Strong Buy) as well. Whereas
), holds a Zacks Rank #2 (Buy).
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