Earnings Preview: Triumph - Analyst Blog
January 28 2013 - 1:40PM
Zacks
Triumph Group Inc. (TGI), an aerospace giant,
is set to report third quarter 2013 results on Jan 30. Last quarter
it posted an 18.9% positive surprise. Let’s see how things are
shaping up for this company.
Growth Factors This Past Quarter
Triumph experienced a strong year-over year revenue increase in
the quarter due to improvement in organic revenue across all
segments. Revenue hike was a result of an increase in the company’s
customers’ production rates on existing programs and new product
introduction.
The major contributors were its Aerostructures and Aftermarket
Services segments, with a huge leap in revenue. Moreover, the
company’s acquisitions also played a vital role in strengthening
the revenue.
The company also reported improved margins for the quarter, due
to effective cost measures taken, resulting in an operating income
increase across all the segments. However, margins were impacted
marginally by the additional integration costs the company had to
bear for the acquisitions.
Based on the increased revenue across segments, operating income
growth and margin expansion, management expects the revenue to
increase in the quarters to come. Steady backlog, stronger balance
sheet and significant cash flow generation were the added
perks.
Earnings Whispers?
The Zacks Consensus Estimate for the third quarter stands at
$1.41. Triumph has beaten estimates in all of the last four
quarters, with a trailing four-quarter average positive surprise of
17.2%. The biggest increase was 19.9% in the fourth quarter of
2012.
Estimate revisions have been minimal in the last 30 days, with
one upward estimate revision in the past 60 days. As a result, the
Zacks Consensus Estimate has remained unchanged for the third
quarter over the last 30 days, while increasing by 0.7% for fiscal
2013.
The lack of downward movement in estimates coupled with a
positive earnings surprise by the company in the last four
quarters, signals that the third quarter might not be too different
from the past quarters. Moreover, the stock carries a Zacks Rank #2
(Buy).
Other Stocks to Consider
There are many aerospace companies that are likely to beat
earnings this quarter. A stock needs to have both a positive
Earnings ESP (Read: Zacks Earnings ESP: A Better Method), and a
Zacks Rank of #1, #2 or #3 for this to happen.Here are some other
companies you may want to consider as our model shows they have the
right combination of elements to post an earnings beat this
quarter:
Esterline Technologies Corporation (ESL), with
Earnings ESP of 18.03% and Zacks Rank #2 (Buy)
Hexcel Corporation (HXL), with Earnings ESP of
2.38% and Zacks Rank #2 (Buy).
Exelis Inc. (XLS), with Earnings ESP of 2.00%
and Zacks Rank #2 (Buy).
ESTERLINE TECHN (ESL): Free Stock Analysis Report
HEXCEL CORP (HXL): Free Stock Analysis Report
TRIUMPH GRP INC (TGI): Free Stock Analysis Report
EXELIS INC (XLS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
MS 8% Xilinx Sparqs (AMEX:XLS)
Historical Stock Chart
From Apr 2024 to May 2024
MS 8% Xilinx Sparqs (AMEX:XLS)
Historical Stock Chart
From May 2023 to May 2024