Triumph Announces Public Offering - Analyst Blog
November 08 2011 - 11:46AM
Zacks
Triumph Group, Inc. (TGI) recently announced a
public offering of 5,000,000 shares of its common stock, offered by
investment funds and other entities associated with The Carlyle
Group. The offering is expected to close and settle on November 14,
2011.
Morgan Stanley & Co. LLC is acting as the sole underwriter
for the offering, upon completion of which the investment funds
associated with The Carlyle Group will own approximately 9.5% of
the company’s common stock.
Of late, the company reported encouraging results for the second
quarter of fiscal 2012 with $1.13 per diluted share, up from 84
cents in the year-ago quarter and 2.9% y/y rise in net sales. The
improved result was driven by significant operating income growth
and operating margin expansion generated in the Aerospace Systems
segment as well as Aerostructures segment.
Triumph Group bears a favorable outlook for fiscal 2012,
expecting to boost current production rates and anticipating
earnings per share from continuing operations to be approximately
$4.50 per diluted share, excluding integration costs. The company’s
recently acquired Aviation Network Services, LLC business is
expected to add approximately $3.0 million of revenue for the
company.
Moreover, the improving air transport industry indicates a
promising demand scenario for the company’s products, equipments
and methods of repair and overhaul services; thereby improving
results going forward.
Based in Wayne, Pennsylvania, Triumph Group offers a variety of
products and services to the aerospace industry. The company serves
commercial and regional airlines, air cargo carriers, as well as
OEMs of commercial, regional, business and military aircrafts. It
faces stiff competition from its peers, such as AAR
Corp. (AIR) and Goodrich Corp. (GR).
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
GOODRICH CORP (GR): Free Stock Analysis Report
TRIUMPH GRP INC (TGI): Free Stock Analysis Report
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