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Why Is Triumph Group (TGI) Down 7.6% Since Last Earnings Report?
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A month has gone by since the last earnings report for Triumph Group (TGI - Free Report) . Shares have lost about 7.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Triumph Group due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Triumph Group Q4 Earnings Top Estimates, Sales Fall Y/Y
Triumph Group Inc.’s fourth-quarter fiscal 2020 (ended Mar 31, 2020) adjusted earnings came in at 69 cents per share, which surpassed the Zacks Consensus Estimate of 56 cents by 23.2%. The bottom line however declined 40% from $1.15 recorded in the prior-year quarter.
Including one-time adjustments, the company incurred GAAP loss of $1.45 per share in the fiscal fourth quarter compared with loss of $4.01 incurred in the year-ago quarter.
Lower loss on sales of assets and businesses in the fiscal fourth quarter contributed to the improved GAAP bottom-line figure.
For fiscal 2020, the company reported adjusted earnings per share of $2.71, which exceeded the Zacks Consensus Estimate of $2.35 by 15.3%. The full-year bottom line also came in higher than the year-ago figure of $2.49.
Total Sales
Net sales in the quarter under review came in at $693.1 million, outpacing the Zacks Consensus Estimate of $657 million by 5.5%. However, the top line declined 20.2% on a year-over-year basis.
After taking divestitures into account, organic sales in the quarter went down 6% year over year due to the impact of the production slow down on 737 MAX and effects of COVID-19.
For fiscal 2020, Triumph Group’s net sales were $2.90 billion, outpacing the Zacks Consensus Estimate of $2.86 billion by 1.4%. However, the top line declined 13.8% from the year-ago figure.
Operational Highlights
In fourth-quarter fiscal 2020, the company generated adjusted operating income of $39.4 million, which declined 38.5% from the year-ago quarter’s figure. Adjusted operating margin of 5.7% contracted 130 basis points from 7% in the fourth-quarter of fiscal 2019.
Interest expenses and other amounted to $26.1 million, down 14.5% from $31.1 million in the prior-year quarter.
Backlog came in at $3.20 billion, down year over year and on a sequential basis due to sunsetting programs and recent production rate reductions.
Segmental Performance
Aerospace Structures: Segment sales totaled $345.2 million, down 32.5% from $511.3 million in the year-ago quarter. The segment incurred operating loss of $2.1 million, reflecting a significant deterioration from the year-ago period.
Systems & Support: Segment sales dropped 2.8% year over year to $352.1 million. Operating loss was $22.5 million, reflecting deterioration from the year-ago quarter’s operating incomeof $55.3 million.
Financial Position
As of Mar 31, 2020, Triumph Group’s cash and cash equivalents totaled $485.5 million, compared with $53.6 millionas of Dec 31, 2019.
Its long-term debt (excluding current portion) amounted to $1.80 billion as of Mar 31, 2020, compared with $1.40 billion as of Dec 31, 2019.
Net cash generated from operating activities in fiscal 2020 was $96.7 million, compared with net cash used worth $174.4 million a year ago.
The company’s capital expenditures were $39.8 million in fiscal 2020 compared with $47.1 million in fiscal 2019.
Guidance
Triumph Group has not provided financial guidance for its fiscal year ending Mar 31, 2021due to the uncertainty in the global market and economic conditions, thanks to COVID-19.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -385% due to these changes.
VGM Scores
Currently, Triumph Group has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. 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 this revision indicates a downward shift. Notably, Triumph Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Triumph Group (TGI) Down 7.6% Since Last Earnings Report?
A month has gone by since the last earnings report for Triumph Group (TGI - Free Report) . Shares have lost about 7.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Triumph Group due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Triumph Group Q4 Earnings Top Estimates, Sales Fall Y/Y
Triumph Group Inc.’s fourth-quarter fiscal 2020 (ended Mar 31, 2020) adjusted earnings came in at 69 cents per share, which surpassed the Zacks Consensus Estimate of 56 cents by 23.2%. The bottom line however declined 40% from $1.15 recorded in the prior-year quarter.
Including one-time adjustments, the company incurred GAAP loss of $1.45 per share in the fiscal fourth quarter compared with loss of $4.01 incurred in the year-ago quarter.
Lower loss on sales of assets and businesses in the fiscal fourth quarter contributed to the improved GAAP bottom-line figure.
For fiscal 2020, the company reported adjusted earnings per share of $2.71, which exceeded the Zacks Consensus Estimate of $2.35 by 15.3%. The full-year bottom line also came in higher than the year-ago figure of $2.49.
Total Sales
Net sales in the quarter under review came in at $693.1 million, outpacing the Zacks Consensus Estimate of $657 million by 5.5%. However, the top line declined 20.2% on a year-over-year basis.
After taking divestitures into account, organic sales in the quarter went down 6% year over year due to the impact of the production slow down on 737 MAX and effects of COVID-19.
For fiscal 2020, Triumph Group’s net sales were $2.90 billion, outpacing the Zacks Consensus Estimate of $2.86 billion by 1.4%. However, the top line declined 13.8% from the year-ago figure.
Operational Highlights
In fourth-quarter fiscal 2020, the company generated adjusted operating income of $39.4 million, which declined 38.5% from the year-ago quarter’s figure. Adjusted operating margin of 5.7% contracted 130 basis points from 7% in the fourth-quarter of fiscal 2019.
Interest expenses and other amounted to $26.1 million, down 14.5% from $31.1 million in the prior-year quarter.
Backlog came in at $3.20 billion, down year over year and on a sequential basis due to sunsetting programs and recent production rate reductions.
Segmental Performance
Aerospace Structures: Segment sales totaled $345.2 million, down 32.5% from $511.3 million in the year-ago quarter. The segment incurred operating loss of $2.1 million, reflecting a significant deterioration from the year-ago period.
Systems & Support: Segment sales dropped 2.8% year over year to $352.1 million. Operating loss was $22.5 million, reflecting deterioration from the year-ago quarter’s operating incomeof $55.3 million.
Financial Position
As of Mar 31, 2020, Triumph Group’s cash and cash equivalents totaled $485.5 million, compared with $53.6 millionas of Dec 31, 2019.
Its long-term debt (excluding current portion) amounted to $1.80 billion as of Mar 31, 2020, compared with $1.40 billion as of Dec 31, 2019.
Net cash generated from operating activities in fiscal 2020 was $96.7 million, compared with net cash used worth $174.4 million a year ago.
The company’s capital expenditures were $39.8 million in fiscal 2020 compared with $47.1 million in fiscal 2019.
Guidance
Triumph Group has not provided financial guidance for its fiscal year ending Mar 31, 2021due to the uncertainty in the global market and economic conditions, thanks to COVID-19.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -385% due to these changes.
VGM Scores
Currently, Triumph Group has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. 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 this revision indicates a downward shift. Notably, Triumph Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.