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Triumph Group (TGI) Q4 Earnings Top Estimates, Sales Fall Y/Y

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Triumph Group Inc.’s (TGI - Free Report) adjusted earnings in fourth-quarter fiscal 2021 (ended Mar 31, 2021) were 10 cents per share, which surpassed the Zacks Consensus Estimate of 9 cents by 11.1%. The bottom line however declined 85.5% from 69 cents recorded in the prior-year quarter.

Including one-time adjustments, the company incurred GAAP loss of $1.27 per share in the fiscal fourth quarter.

For fiscal 2021, the company reported adjusted loss of 3 cents, which came in narrower than the Zacks Consensus Estimate of a loss of 11 cents.  

Total Sales

Net sales in the quarter under review came in at $466.8 million, beating the Zacks Consensus Estimate of $430 million by 8.5%. However, the top line plunged 32.6% on a year-over-year basis.

Triumph Group, Inc. Price, Consensus and EPS Surprise

Triumph Group, Inc. Price, Consensus and EPS Surprise

Triumph Group, Inc. price-consensus-eps-surprise-chart | Triumph Group, Inc. Quote

After taking divestitures into account, organic sales in the quarter went down 29% year over year because of planned reductions on sunsetting and transitioned programs, impacts of the COVID-19 pandemic and resulting production rate decreases primarily on commercial programs.

For fiscal 2021, the company recorded sales worth $1.87 billion, down from $2.90 billion generated in fiscal 2020. The full-year top line surpassed the Zacks Consensus Estimate of $1.83 billion.

Operational Highlights

In fourth-quarter fiscal 2021, the company generated adjusted operating income of $32.9 million, which declined 16.4% from the year-ago quarter’s figure. Adjusted operating margin of 7% improved 140 basis points from 5.6% in the fourth quarter of fiscal 2020.

Interest expenses and other amounted to $39.1 million, up 49.9% from $26.1 million in the prior-year quarter.

Backlog came in at $1.9 billion, down year over year and on a sequential basis due to divestitures, sunsetting programs and recent production rate reductions.

Segmental Performance

Aerospace Structures: Segment sales totaled $165.3 million, down 52.1% from $345.2 million in the year-ago quarter. The segment incurred operating loss of $13.5 million during fourth-quarter fiscal 2021, compared with loss of $2.1 million in the prior-year quarter.

Systems & Support: Segment sales declined 14.3% year over year to $301.8 million. Operating income was $39.5 million during fourth-quarter fiscal 2021 against operating loss of $22.5 million incurred in the year-ago quarter.

Financial Position   

As of Mar 31, 2021, Triumph Group’s cash and cash equivalents totaled $589.8 million, compared with $477.3 million as of Dec 31, 2020.

Its long-term debt (excluding current portion) amounted to $1.95 billion as of Mar 31, 2021, compared with $2.13 billion as on Dec 31, 2020.

Net cash used in operating activities in fiscal 2021 was $173.2 million against net cash generated worth $96.7 million in fiscal 2020.

The company’s capital expenditures were $25.2 million in fiscal 2021 compared with $39.8 million in the prior year.

Guidance

Due to the uncertainty around the impacts of business disruptions related to the COVID-19 pandemic on the global market and general economic conditions, Triumph Group has not provided  financial guidance for its fiscal year ending Mar 31, 2022.

Zacks Rank

Triumph Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2021 earnings of $6.56 per share, which surpassed the Zacks Consensus Estimate of $6.32 by 3.8%.

Hexcel Corporation (HXL - Free Report) reported first-quarter 2021 loss of 10 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 16 cents.

Raytheon Technologies Corp’s (RTX - Free Report) first-quarter 2021 adjusted earnings per share of 90 cents outpaced the Zacks Consensus Estimate of 88 cents by 2.3%.

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