Yahoo Finance What Does The Future Hold For Triumph Group, Inc. (NYSE:TGI)? These Analysts Have Been Cutting Their Estimates
Today is shaping up negative for Triumph Group, Inc. (NYSE:TGI) shareholders, with the analysts delivering a substantial negative revision to next year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.
Following this downgrade, Triumph Group's eight analysts are forecasting 2025 revenues to be US$1.4b, approximately in line with the last 12 months. Before the latest update, the analysts were foreseeing US$1.5b of revenue in 2025. The consensus view seems to have become more pessimistic on Triumph Group, noting the substantial drop in revenue estimates in this update.
Check out our latest analysis for Triumph Group
We'd point out that there was no major changes to their price target of US$19.64, suggesting the latest estimates were not enough to shift their view on the value of the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2025 compared to the historical decline of 23% per annum over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 6.5% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Triumph Group to suffer worse than the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their revenue estimates for next year. They're also anticipating slower revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Triumph Group after today.
After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Triumph Group's business, like dilutive stock issuance over the past year. Learn more, and discover the 2 other warning signs we've identified, for free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
