Triumph Beats Earnings Estimates - Analyst Blog

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Triumph Group Inc. 's ( TGI ) adjusted earnings from continuing operations for the fiscal first quarter 2014 ended Jun 31, 2013, came in at $1.54 per share, beating the Zacks Consensus Estimate by a penny. The quarterly result also increased 4.1% from the year-earlier adjusted profit of $1.48. The improved performance was backed by solid execution and lower costs.

Revenue

In the reported quarter, net sales inched up 6.3% year over year to $943.7 million, of which organic growth moderated by 2% owing to a decline in non-recurring revenue. The reported figure failed to match up with the Zacks Consensus Estimate of $963.0 million.

Segment-wise, sales from Aerostructures dropped to $651.9 million from $669.9 million in the prior-year comparable quarter. Aerospace Systems revenue grew 56.2% year over year to $ 219.5 million, while Aftermarket Services decreased to $74.4 million from $80.0 million in the year-ago quarter.

Margins

Operating income in the fiscal first quarter increased marginally to $141.3 million from $140.9 million in the year-ago quarter. Operating margin stood at 15.0% in the reported quarter versus 15.9% in the fiscal first quarter of 2013.

On a segmental basis, Aerostructures reported a 16.4% decline in operating income, to settle at $100.4 million. Aerospace Systems' operating income jumped 81.3% to $42.6 million. However, Aftermarket Services displayed a decrease of 4.5% to $11.3 million.

Balance Sheet

Exiting the fiscal first quarter 2014, Triumph's cash and cash equivalents were $18.5 million compared with $32.0 million at the end of the prior-year quarter. Long-term debt (including the current portion) was $1,413.8 million, up from $1,329.9 million in the fiscal fourth quarter of 2013. The debt-to-capitalization ratio in the reported quarter stood at 39.9%.

Cash Flow

Cash from operations, before pension contributions, was $37.6 million in fiscal first quarter of 2014, down from $127.6 million in the year-ago period. Capital expenditures climbed to $56.2 million during the quarter from $37.1 million in the year-ago period.

Guidance

For fiscal year 2014, the company reaffirmed its sales forecast in the range of $3.8 billion to $4.0 billion and earnings per share from continuing operations of $5.65 to $5.75 per diluted share. Adjusted earnings per share from continuing operations for fiscal year 2014 are expected in a band of $6.30 to $6.40 per diluted share.

Zacks Rank

Triumph carries a Zacks Rank #3 (Hold). However, other aviation companies like Astronics Corporation ( ATRO ), AAR Corp. ( AIR ) and B/E Aerospace Inc. ( BEAV ) are worth looking into now. While Astronics sports a Zacks Rank #1 (Strong Buy), AAR Corp and B/E Aerospace carry a Zacks Rank #2 (Buy).



AAR CORP (AIR): Free Stock Analysis Report

ASTRONICS CORP (ATRO): Free Stock Analysis Report

B/E AEROSPACE (BEAV): Free Stock Analysis Report

TRIUMPH GRP INC (TGI): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: AIR , ATRO , BEAV , TGI

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