Triumph Declares Public Offering - Analyst Blog

By
A A A
Share |

Based in Wayne, Pennsylvania, Triumph Group, Inc. ( TGI ) recently issued a public offering of 4,666,116 shares of its common stock. The company is likely to close and settle the offering on June 12, 2012.

The Carlyle Group's investment funds and units will be selling all their interest in Triumph Group via this public offering. Sole underwriter to this offering is Credit Suisse Securities (USA) LLC.

Of late, the company reported encouraging results for the fourth quarter and fiscal 2012 with $1.57 per diluted share, up from $1.07 in the year-ago quarter and a 3% y/y rise in net sales. The improved results were driven by significant operating income growth and operating margin expansion generated in the company's Aerospace Systems segment as well as Aerostructures segment with organic growth reaching 3%.

Triumph Group bears a favorable outlook for fiscal 2013, expecting to boost current production rates and anticipating earnings per share from continuing operations to be within the range of $5.45 to $5.55, excluding integration costs. Moreover, strong backlog during the fourth quarter of 2012 coupled with a solid balance sheet looks impressive for the company's upcoming financial year.

The improving air transport industry indicates a promising demand scenario for the company's products, equipment and methods of repair and overhaul services; thereby improving its results going forward. However, it faces stiff competition from its peers, such as Hexcel Corp. ( HXL ), Rolls Royce Holdings plc ( RYCEY ) and AAR Corp. ( AIR ).

We currently maintain a long-term 'Neutral' recommendation on the stock. Triumph Group holds a Zacks #2 Rank, which translates into a short-term 'Buy' rating (1-3 months).


 
AAR CORP (AIR): Free Stock Analysis Report
 
HEXCEL CORP (HXL): Free Stock Analysis Report
 
(RYCEY): ETF Research Reports
 
TRIUMPH GRP INC (TGI): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research



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 , Stocks

Referenced Stocks: AIR , HXL , RYCEY , TGI , USA

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

100%
100%
100%
0%

Most Active by Volume

89,970,926
  • $16.15 ▲ 0.12%
77,131,582
  • $58.94 ▼ 1.31%
67,336,935
  • $26.56 ▲ 1.68%
48,814,124
  • $86.20 ▲ 0.02%
47,526,126
  • $23.21 ▲ 0.78%
44,660,424
  • $23.91 ▲ 6.36%
38,799,699
  • $4.289 ▲ 4.36%
36,199,890
  • $40.01 ▼ 0.97%
As of 4/17/2014, 04:07 PM