We have retained our Outperform recommendation on the
Triumph Group Inc.
), due to its strong third quarter 2013 results. The stock
currently holds a Zacks Rank #2 (Buy).
Why the Reiteration?
Triumph reported a solid third quarter 2013 results with EPS
of $1.46, surpassing the Zacks Consensus Estimate of $1.38, by a
comfortable margin of 5.8%. The earnings also increased year over
year by 13.2%. This increment was a result of a sound organic
growth of the company coupled with good cost control measures
taken in the quarter.
The company also reported a strong backlog of $4.1 billion
exiting the third quarter 2013. This is expected to boost up the
revenue generation in the upcoming quarters.
In the last thirty days, most of the estimates for fiscal 2013
have been revised upwards with none moving down. A similar trend
was observed for fiscal 2014.
Triumph also acquired Embee Incorporated in December 2012,
which is expected to contribute roughly $50.0 million in annual
revenue. Also, subsequent to the quarter, Triumph also announced
its plans to acquire Goodrich Pump & Engine Control Systems
(GPECS), scheduled for completion in the current quarter. The
acquisition is expected to contribute roughly $195.0 million to
the annual revenue.
Moreover, the aviation market in general is expected to expand
due to an increase in demand of general aviation aftermarket
parts and services. Also, with an increase in energy costs, the
demand for fuel-efficient jets is bound to increase. The company
is likely to benefit from its fuel control and technologically
Other Stocks to Consider
Other stocks worth a look in the industry are
Alliant Techsystems Inc.
Esterline Technologies Corp.
); all of them carrying a Zacks Rank #2.
ALLIANT TECHSYS (ATK): Free Stock Analysis
CAE INC (CAE): Free Stock Analysis Report
ESTERLINE TECHN (ESL): Free Stock Analysis
TRIUMPH GRP INC (TGI): Free Stock Analysis
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