Triumph Group Beats Earnings - Analyst Blog

By
A A A

Triumph Group Inc. ( TGI ) reported fourth quarter of fiscal 2013 results that ended Mar 31, 2013. Adjusted earnings from continuing operations of $1.68 per share surpassed the Zacks Consensus Estimate of $1.59 by 5.7% and also increased 7.0% from the year-earlier adjusted profit of $1.57.

Adjusted income from continuing operations came in at $6.21 per share in fiscal year 2013, which climbed nearly 24% from $5.01 posted in fiscal year 2012.

During the quarter as well as full year, the company registered strong results across all its business segments. Apart from completing two important acquisitions - Embee Inc. and Triumph Engine Control Systems (previously known as Goodrich Pump & Engine Control Systems) from United Technologies Corp. ( UTX ) - Triumph offloaded two of its Aftermarket Services' Instruments Companies. These acquisitions are expected to contribute significantly to revenue going forward.

Revenue

In the reported quarter, net sales inched up 4.2% year over year to $986.3 million, of which organic growth accounted for 2%. The reported figure also beat the Zacks Consensus Estimate of $950.0 million.

Segment-wise, sales from Aerostructures surged to $720.7 million from $714.2 million in the prior-year comparable quarter, the growth being entirely organic. Aerospace Systems revenue grew 21.4% year over year to $184.1 million, while Aftermarket Services increased marginally to $83.9 million from $83.1 million in the year-ago quarter.

Full year fiscal 2013 top line grew 8.6% year over year to $3,702.7 million, of which organic growth was 8%.

Margins

Operating income in the fiscal fourth quarter plummeted 38.4% to $134.4 million from $183.2 million in the year-ago quarter. Operating margin decreased to 11.5% in the reported quarter from 19.4% in the fiscal fourth quarter of 2012.

On a segmental basis, Aerostructures reported a 6.8% decline in operating income, to settle at $110.9 million. However, Aerospace Systems' operating income grew 26.5% to $33.4 million. Also, Aftermarket Services displayed a rise of 18.2% to reach $13.0 million.

For fiscal 2013, the company's operating income climbed 3.2% year over year to $531.2 million. All three business segments at Triumph Group executed well and delivered year-over-year operating margin expansion.

Balance Sheet

Exiting the fiscal fourth quarter, Triumph's cash and cash equivalents were $32.0 million compared with $29.7 million at the end of the prior-year quarter. Long-term debt (including the current portion) was up 14.8% to $1,329.9 million from $1,158.9 million in the prior year. The debt-to-capitalization ratio in the reported quarter stood at 39.4%.

Cash Flow

Cash from operations, before pension contributions, was $453.2 million in fiscal 2013; up from $349.1 million in the year-ago period. Capital expenditures climbed to $142.8 million during the year from $94.0 million in the year-ago quarter.

Guidance

For fiscal year 2014, the company expects sales 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 #2 (Buy). Other aviation companies like B/E Aerospace Inc. ( BEAV ) with a Zacks Rank #2 (Buy) and Elbit Systems Ltd. ( ESLT ) with a Zacks Rank #1 (Strong Buy) are also worth considering.



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

ELBIT SYSTEMS (ESLT): Free Stock Analysis Report

TRIUMPH GRP INC (TGI): Free Stock Analysis Report

UTD TECHS CORP (UTX): 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 , Earnings , Stocks

Referenced Stocks: BEAV , ESLT , TGI , UTX

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

88,363,013
  • $102.47 ▲ 2.72%
76,664,591
  • $16.60 ▲ 2.09%
75,156,840
  • $13.20 ▼ 5.71%
53,255,668
  • $40.68 ▼ 6.03%
49,564,657
  • $96.87 ▲ 2.63%
42,649,404
  • $9.26 ▲ 1.09%
37,436,329
  • $31.19 ▲ 5.05%
35,538,826
  • $28.28 ▲ 1.25%
As of 10/21/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com