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Triumph Group (TGI) Q3 Earnings Beat Estimates, Sales Dip Y/Y

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Shares of Triumph Group, Inc. (TGI - Free Report) slipped 0.1% to $20.51 on Feb 10, following the company’s third-quarter fiscal 2022 results release.

Triumph Group reported third-quarter fiscal 2022 (ended Dec 31, 2021) adjusted earnings of 21 cents per share, which surpassed the Zacks Consensus Estimate of 20 cents by 5%. The bottom line also surged a solid 133.3% from 9 cents per share.

Including one-time adjustments, TGI generated a GAAP earnings of 11 cents per share in the fiscal third quarter against a loss of $1.30 in the prior-year quarter.

Total Sales

Triumph Group’s net sales in the quarter under review were $319.2 million, which missed the Zacks Consensus Estimate of $369 million by 13.4%. The top line declined 25.1% from $425.9 million in the year-ago quarter.

Considering the impact of divestitures and sunsetting programs, organic sales in the quarter were down 5% year over year, primarily due to declines in commercial wide-body production, partially offset by increases in commercial narrow-body production.

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

Operational Highlights

In the third quarter of fiscal 2022, Triumph Group generated adjusted operating income of $32.8 million, which declined 13.7% from the year-ago reported figure. Adjusted operating margin of 10.3% expanded 140 basis points from 8.9% in the third quarter of fiscal 2021.

Interest expenses and others amounted to $32.3 million, down 28% from the prior-year quarter.

Triumph Group’s backlog was $1.95 billion, up 4% on a sequential basis from $1.94 billion.

Segmental Performance

Aerospace Structures:The segment’s sales totaled $82.9 million, down 48.9% from $162.4 million in the year-ago quarter. The segment reported an operating loss of $3.5 million in the third quarter of fiscal 2022.

Systems & Support:The segment’s sales declined 10.5% year over year to $236.3 million. Operating income was $40.6 million in the third quarter of fiscal 2022.

Financial Position

As of Dec 31, 2021, TGI’s cash and cash equivalents totaled $206.1 million compared with $589.9 million as of Mar 31, 2021.

Its long-term debt (excluding the current portion) amounted to $1.58 billion as of Dec 31, 2021, compared with $1.95 billion as of Mar 31, 2021.

Net cash used in operating activities for the nine months ended Dec 31, 2021, was $169.9 million compared with net cash outflow of $195.9 million in the same period last year.

Triumph Group’s capital expenditures were $15.8 million in the first nine months of fiscal 2022 compared with $18.9 million in the prior-year period.

Guidance

Triumph Group updated its financial guidance for fiscal 2022. The company now anticipates generating adjusted earnings per share (EPS) in the range of 80-90 cents. The Zacks Consensus Estimate for earnings is pegged at 75 cents, which is less than the newly guided range.

TGI now expects net sales of $1.50 billion in fiscal 2022. The Zacks Consensus Estimate for revenues of $1.55 billion lies above the company’s guided range.

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.

Defense Releases

Hexcel Corporation (HXL - Free Report) reported fourth-quarter 2021 adjusted earnings of 16 cents per share, which exceeded the Zacks Consensus Estimate of 12 cents by 33.3%. The bottom line also improved from a loss of 18 cents per share incurred in the year-ago quarter.

The Zacks Consensus Estimate for Hexcel’s 2022 earnings suggests an improvement of a solid 359.3% from the prior-year figure. For HXL’s 2022 sales, the Zacks Consensus Estimate reflects growth of 17.5% from the prior-year figure.

Boeing (BA - Free Report) incurred an adjusted loss of $7.69 per share for the fourth quarter of 2021, wider than the Zacks Consensus Estimate of a loss of 9 cents. Its revenues amounted to $14.79 billion, which missed the Zacks Consensus Estimate of $16.96 billion by 12.8%.

Boeing boasts a long-term earnings growth rate of 4%. The Zacks Consensus Estimate for BA’s 2022 earnings implies an upward revision of 137.3% from the prior-year figure.

Lockheed Martin (LMT - Free Report) reported fourth-quarter 2021 adjusted earnings of $7.24 per share, which surpassed the Zacks Consensus Estimate of $7.23 by 0.1%. Its net sales amounted to $17.73 billion, which outpaced the Zacks Consensus Estimate by 0.4%.

Lockheed Martin’s long-term earnings growth is projected at 3.6%. The Zacks Consensus Estimate for LMT’s 2022 EPS indicates year-over-year growth of 17.5%.

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