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Triumph Group (TGI) Q1 Earnings Beat Estimates, Sales Fall Y/Y

·4 min read

Triumph Group, Inc. TGI reported first-quarter fiscal 2022 (ended Jun 30, 2022) adjusted earnings of 12 cents per share, which surpassed the Zacks Consensus Estimate of 9 cents by 33.3%. The bottom line also surged 33.3% from 9 cents per share.

Including one-time adjustments, TGI incurred a GAAP loss of 16 cents per share in the fiscal first quarter compared with a loss of 47 cents per share in the prior-year quarter.

Total Sales

Triumph Group’s net sales in the quarter under review were $349.4 million, which beat the Zacks Consensus Estimate of $320 million by 9.2%. The top line, however, declined 11.9% from $396.6 million in the year-ago quarter.

Excluding divestitures and exited programs, organic sales in the quarter were up 1% year over year, primarily due to 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 and EPS Surprise

Triumph Group, Inc. price-consensus-eps-surprise-chart | Triumph Group, Inc. Quote

Operational Highlights

In the first quarter of fiscal 2022, Triumph Group generated an adjusted operating income of $32.6 million, which increased 4.2% from the year-ago reported figure. The adjusted operating margin of 9% expanded 100 basis points from 8% in the first quarter of fiscal 2021.

Interest expenses and others amounted to $31.9 million, down 17.4% from the prior-year quarter.

Triumph Group’s backlog was $1.53 billion, up 7.7% on a sequential basis from $1.42 billion.

Segmental Performance

Aerospace Structures: The segment’s sales totaled $94.8 million, down 31.5% from $138.3 million in the year-ago quarter. The segment reported an operating loss of $2.3 million for the first quarter of fiscal 2022.

Systems & Support: The segment’s sales declined 1.5% year over year to $254.6 million. The operating income was $33.2 in the first quarter of fiscal 2022.

Financial Position

As of Jun 30, 2022, TGI’s cash and cash equivalents totaled $134.6 million compared with $240.9 million as of Mar 31, 2022.

Its long-term debt (excluding the current portion) amounted to $1.59 billion as of Jun 30, 2022, flat with the long-term debt as of Mar 31, 2022.

Net cash used in operating activities as of Jun 30, 2022 was $93 million compared with the net cash outflow of $149.5 million in the same period last year.

Triumph Group’s capital expenditures were $3 million as of Jun 30, 2022 compared with $2.1 million in the prior year.

Guidance

Triumph Group provided its financial guidance for fiscal 2023. The company anticipates adjusted earnings per share (EPS) in the range of 28-48 cents. The Zacks Consensus Estimate for earnings is pegged at 55 cents per share, much higher than the guided range.

TGI expects net sales of $1.3 billion in fiscal 2023. The Zacks Consensus Estimate for revenues lies in line with 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.

Recent Defense Releases

Lockheed Martin LMT reported second-quarter 2022 earnings of $6.32 per share, which surpassed the Zacks Consensus Estimate of $6.29 by 0.5%. However, the bottom line declined 1.6% year over year.

Lockheed Martin’s top line declined 9.3% from the $17.03 billion reported in the year-ago quarter. LMT ended the second quarter of 2022 (on Jun 26, 2022) with $134.64 billion in the backlog compared with $135.23 billion at the end of the first quarter of 2022.

AAR Corp. AIR reported fourth-quarter fiscal 2022 adjusted earnings of 72 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 5.9%. Earnings recorded a solid surge of 53.2% from the year-ago quarter.

AAR generated net sales worth $476.1 million, which improved 8.8% from the $437.6 million recorded in the year-ago quarter. AIR’s cash and cash equivalents amounted to $53.5 million as of May 31, 2022 compared with $51.8 million as of May 31, 2021.

Raytheon Technologies’ RTX second-quarter 2022 adjusted EPS of $1.16 beat the Zacks Consensus Estimate of $1.12 by 3.6%. Moreover, the bottom line improved 13% from the year-ago quarter’s adjusted earnings of $1.03.

Raytheon Technologies had cash and cash equivalents of $4,767 million as of Jun 30, 2022 compared with $7,832 million as of Dec 31, 2021. RTX projects the 2022 adjusted EPS in the range of $4.60-$4.80.


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