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