Yahoo Finance TriMas (TRS) Earnings Miss Estimates in Q4, Revenue Dip Y/Y
TriMas Corporation TRS reported fourth-quarter 2022 adjusted earnings per share (EPS) of 62 cents, missing the Zacks Consensus Estimate of 66 cents. However, the bottom line increased 11% from the prior-year quarter’s levels.
Including the impacts of one-time items, the company reported EPS of 45 cents compared with the year-ago quarter's 30 cents.
The company's revenues declined 2.7% year over year to $203 million, attributed to lower demand for TriMas Packaging's products used in certain consumer goods applications and the effects of unfavorable currency exchange. The top line missed the Zacks Consensus Estimate of $212 million.
TriMas Corporation Price, Consensus and EPS Surprise
TriMas Corporation price-consensus-eps-surprise-chart | TriMas Corporation Quote
Costs & Margins
Cost of sales decreased 1.1% year over year to $158 million in the reported quarter. Gross profit fell 7.7% year over year to $46 million. The gross margin was 22.4% compared with 23.6% in the prior-year quarter.
Selling, general and administrative expenses were up 15.4% year over year to $37 million. Adjusted operating profit increased 47.8% year over year to $36 million, owing to the favorable impacts of price increases. The adjusted operating margin expanded to 17.8% from the prior-year quarter’s 11.7%.
Segment Performance
Packaging: Net sales were $106 million compared with the year-ago quarter’s $124 million. Adjusted operating profit declined 31.7% year over year to $15 million in the reported quarter.
Aerospace: Net sales increased 6.5% year over year to $51 million in the fourth quarter. The segment reported an adjusted operating profit of $1.4 million compared with the year-ago quarter’s $3.5 million.
Specialty Products: The segment's revenues increased 24.4% year over year to $47 million. Adjusted operating profit surged 75.9% year over year to $9.5 million.
Financial Performance
In 2022, TriMas repurchased approximately 1.3 million shares of its outstanding common stock for $36.9 million. As of Dec 31, 2022, the company had $410 million of cash and aggregate availability under its revolving credit facility.
TriMas generated $89 million of adjusted cash flow from operations in 2022 compared with $145 million in the prior year. The company ended the year with $112.1 million of unrestricted cash on hand. As of Dec 31, 2022, the total debt was $394.7 million compared with $393.8 million as of Dec 31, 2021.
2022 Results
TriMas reported an adjusted EPS of $2.12 in 2022 compared with $2.24 in the prior year. Earnings missed the Zacks Consensus Estimate of $2.15. Including one-time items, the bottom line was $1.56 compared with $1.32 in 2021.
Sales were up 3.1% year over year to $883 million. The top line missed the Zacks Consensus Estimate of $892 billion.
2023 Guidance
For first-quarter 2023, the company expects adjusted EPS between 24 cents and 28 cents.
TriMas expects year-over-year sales growth of 10-15% for 2023. Adjusted EPS is expected to be $2.00-$2.20. It expects free cash flow to be greater than 100% of net income in 2023.
Price Performance
Shares of TriMas have lost 9.6% in the past year against the industry’s growth of 2.1%.
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Zacks Rank & Stocks to Consider
TriMas carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Industrial Products sector are OI Glass OI, Tenaris TS and Deere & Company DE. OI and TS flaunt a Zacks Rank #1 (Strong Buy) at present, and DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
OI Glass has an average trailing four-quarter earnings surprise of 16.4%. The Zacks Consensus Estimate for OI’s 2023 earnings is pegged at $2.57 per share. This indicates an 11.7% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved 16% north in the past 60 days. OI’s shares gained 71.3% in the last year.
Tenaris has an average trailing four-quarter earnings surprise of 11.5%. The Zacks Consensus Estimate for TS’ 2023 earnings is pegged at $6.04 per share. This indicates a 39.5% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved north by 17% in the past 60 days. Its shares gained 29.7% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $29.82, suggesting an increase of 28.1% from that reported in the last year. The consensus estimate for fiscal 2023 earnings moved 6% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 4.7%. Its shares gained 15.9% in the last year.
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