Earnings Preview: Triumph Group Inc. - Analyst Blog
January 27 2012 - 12:33PM
Zacks
Triumph Group Inc. (TGI) will be reporting its
third-quarter 2012 earnings on Monday, January 30, 2012, after the
market closes.
The current Zacks Consensus Estimate for earnings per share
(EPS) is $1.13, representing an annualized growth of 26.35%.
With respect to earnings surprises over the trailing four
quarters, TGIoutperformedthe Zacks Consensus Estimate in three
quarters and was in line in one; leading to an average earnings
surprise of 10.18%. The average earnings surprise implies that the
company outperformed the Zacks Consensus Estimate by the same
magnitude over the last four quarters.
Second Quarter 2012 Highlights
On October 31, 2011, Triumph Group Inc. reported encouraging
results for the second quarter of fiscal 2012. Second-quarter
earnings per diluted share came in at $1.13, showing an improvement
from 84 cents in the year-ago comparable quarter. Results also
surpassed the Zacks Consensus Estimate of $1.04.
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.
In the second quarter of 2012, net sales inched up 2.9% year
over year to $790.5 million. Segment wise, sales from
Aerostructures rose 1.7% to $588 million from $578 million in the
prior-year comparable quarter. Aerospace System revenue grew 8.1%
year over year to $134 million, while Aftermarket Services
increased 2.9% to $71 million from $69 million in the year-ago
quarter. The segmental growth resulted from the company’s good
execution in all its segments. In addition, the Aerostructures
segment margins benefited from the synergies realized from the
Vought acquisition.
Agreement of Estimate Revisions
In the last 30 days, one analyst providing estimate increased
the company’s earnings per share (EPS) estimates, while one analyst
decreased the EPS estimate for the third quarter 2012. For fiscal
2012, one analyst decreased the estimate. For fiscal 2013 one
analyst increased estimate for the last 30 days while one decreased
the same.
Magnitude of Estimate Revisions
Estimates over the last 30 days remained intact at $1.13 per
share for the third quarter of 2012, representing a year-over-year
growth of 26.35%.
Estimate for fiscal 2012 remained same at $4.54 over the last 30
days while that for fiscal 2013 increased marginally from $5.19 to
$5.20. These estimates represented a year-over-year growth of
33.82% for 2012 and 14.51% for 2013.
Our Take
Triumph Group is likely to post impressive results in the third
quarter of 2012 based on the recent rebound in commercial air
traffic and a slight increase in US defense spending. This may call
for a rise in demand for the company’s products, equipments and
methods of repair and overhaul services. Moreover, we believe that
the company’s continued focus on execution and the cost control
programs will drive operating income growth and margin
expansion.
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 has a Zacks #3 Rank, which translates into a
short-term Hold 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
To read this article on Zacks.com click here.
Zacks Investment Research
Goodrich (NYSE:GR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Goodrich (NYSE:GR)
Historical Stock Chart
From Jul 2023 to Jul 2024