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TriMas (TRS) Up 1.6% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for TriMas (TRS - Free Report) . Shares have added about 1.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is TriMas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
TriMas Q2 Earnings Miss Estimates, Revenues Rise Y/Y
TriMas reported second-quarter 2024 adjusted earnings per share (EPS) of 43 cents (including non-cash compensation expenses), which missed the Zacks Consensus Estimate of 53 cents. The bottom line declined 23.2% from the prior-year quarter.
Including the impacts of one-time items, the company reported an EPS of 27 cents compared with the year-ago quarter's 26 cents.
The company's revenues increased 3.1% year over year to $241 million. Organic sales growth in packaging and aerospace product lines helped offset lower market demand for products used in some industrial, and oil and gas applications in the Specialty Products segment. The top line beat the Zacks Consensus Estimate of $232 million.
Overall, organic sales improved 2.8% in the quarter. Contribution from acquisitions to sales was 0.6% in the quarter.
Costs & Margins
The cost of sales rose 4.4% year over year to $186.5 million in the reported quarter. Gross profit declined 1% year over year to $54 million. The gross margin was 22.5% compared with 23.4% in the prior-year quarter.
Selling, general and administrative expenses rose 4.9% year over year to $36 million. Adjusted operating profit declined 24% year over year to $21 million. The adjusted operating margin contracted to 8.6% from the prior-year quarter’s 11.8%.
Segment Performances
Packaging: Net sales came in at $132 million compared with the year-ago quarter’s $117 million. The upside was driven by organic growth within the personal care, beauty and industrial end markets. Organic sales rose 13% year over year. Adjusted operating profit plunged 15.9% year over year to $18.5 million in the reported quarter.
Aerospace: Net sales increased 30% year over year to $78 million, attributed to increased production efficiencies and commercial actions. Organic sales rose 27.6%. The segment reported an adjusted operating profit of $10.5 million, marking a substantial jump from the year-ago quarter’s $3.7 million, driven by the company’s operational excellence initiatives and higher conversion rates.
Specialty Products: The segment's revenues decreased 45% year over year to $31 million due to lower demand. Operating profit fell 95.2% year over year to $0.58 million.
Financial Performance
In the first six months of 2024, TriMas repurchased approximately 671,937 of its outstanding common stock for $16.9 million. The company generated $18.4 million of adjusted cash flow from operations in the quarter under review compared with $16.5 million in the prior-year quarter.
TRS ended the quarter with $35 million of cash on hand compared to $34.8 million reported at the end of 2023. The company had $232.5 million of cash and available borrowing capacity under its revolving credit facility. As of Jun 30, 2024, the total debt was $427 million compared with $396 million as of Dec 31, 2023.
2024 Guidance
TriMas lowered its guidance for 2024, anticipating a decline in sales in the Specialty Products segment. The company expects an adjusted EPS of $1.70-$1.90, down from the previously stated $1.95 to $2.15.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -9.52% due to these changes.
VGM Scores
Currently, TriMas has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, TriMas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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TriMas (TRS) Up 1.6% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for TriMas (TRS - Free Report) . Shares have added about 1.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is TriMas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
TriMas Q2 Earnings Miss Estimates, Revenues Rise Y/Y
TriMas reported second-quarter 2024 adjusted earnings per share (EPS) of 43 cents (including non-cash compensation expenses), which missed the Zacks Consensus Estimate of 53 cents. The bottom line declined 23.2% from the prior-year quarter.
Including the impacts of one-time items, the company reported an EPS of 27 cents compared with the year-ago quarter's 26 cents.
The company's revenues increased 3.1% year over year to $241 million. Organic sales growth in packaging and aerospace product lines helped offset lower market demand for products used in some industrial, and oil and gas applications in the Specialty Products segment. The top line beat the Zacks Consensus Estimate of $232 million.
Overall, organic sales improved 2.8% in the quarter. Contribution from acquisitions to sales was 0.6% in the quarter.
Costs & Margins
The cost of sales rose 4.4% year over year to $186.5 million in the reported quarter. Gross profit declined 1% year over year to $54 million. The gross margin was 22.5% compared with 23.4% in the prior-year quarter.
Selling, general and administrative expenses rose 4.9% year over year to $36 million. Adjusted operating profit declined 24% year over year to $21 million. The adjusted operating margin contracted to 8.6% from the prior-year quarter’s 11.8%.
Segment Performances
Packaging: Net sales came in at $132 million compared with the year-ago quarter’s $117 million. The upside was driven by organic growth within the personal care, beauty and industrial end markets. Organic sales rose 13% year over year. Adjusted operating profit plunged 15.9% year over year to $18.5 million in the reported quarter.
Aerospace: Net sales increased 30% year over year to $78 million, attributed to increased production efficiencies and commercial actions. Organic sales rose 27.6%. The segment reported an adjusted operating profit of $10.5 million, marking a substantial jump from the year-ago quarter’s $3.7 million, driven by the company’s operational excellence initiatives and higher conversion rates.
Specialty Products: The segment's revenues decreased 45% year over year to $31 million due to lower demand. Operating profit fell 95.2% year over year to $0.58 million.
Financial Performance
In the first six months of 2024, TriMas repurchased approximately 671,937 of its outstanding common stock for $16.9 million. The company generated $18.4 million of adjusted cash flow from operations in the quarter under review compared with $16.5 million in the prior-year quarter.
TRS ended the quarter with $35 million of cash on hand compared to $34.8 million reported at the end of 2023. The company had $232.5 million of cash and available borrowing capacity under its revolving credit facility. As of Jun 30, 2024, the total debt was $427 million compared with $396 million as of Dec 31, 2023.
2024 Guidance
TriMas lowered its guidance for 2024, anticipating a decline in sales in the Specialty Products segment. The company expects an adjusted EPS of $1.70-$1.90, down from the previously stated $1.95 to $2.15.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -9.52% due to these changes.
VGM Scores
Currently, TriMas has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, TriMas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.