Triumph Group Earnings Preview

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Triumph Group (NYS: TGI) came in right in line with the Street's expectations last quarter, but investors are hoping that it will beat them this quarter. The company will unveil its latest earnings on Thursday, July 28. Triumph Group designs, engineers, manufactures, and sells products for the global aerospace original-equipment manufacturers of aircraft and aircraft components, and repairs and overhauls aircraft components and accessories.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Triumph Group, with 11 of 12 rating it a buy and the remainder rating it a hold. Analysts like Triumph Group better than competitor Esterline Technologies overall. Analysts' rating of Triumph Group has stayed constant from three months prior.
  • Revenue Forecasts: On average, analysts predict $805.4 million in revenue this quarter. That would represent a rise of 98.2% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.85 per share. Estimates range from $0.60 to $0.92.

What our community says:
CAPS All Stars are solidly behind the stock, with 97.7% granting it an "outperform" rating. The community at large agrees with the All Stars, with 96% giving it a rating of "outperform." Fools are keen on Triumph Group, though the message boards have been quiet lately with only 66 posts in the past 30 days. Despite the majority sentiment in favor of Triumph Group, the stock has a middling CAPS rating of three out of five stars.

Management:
Triumph Group's profit has risen year over year by an average of more than threefold. The company's gross margin shrank by six percentage points in the last quarter. Revenue rose 161.1% while cost of sales rose 183.3% to $709.3 million from a year earlier.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters:

Quarter

Q4

Q3

Q2

Q1

Gross Margin

22.8%

22.2%

22.8%

26.7%

Operating Margin

11.8%

10.7%

11.2%

8.1%

Net Margin

5.7%

5.5%

5.4%

2.8%

One final thing: If you want to keep tabs on Triumph Group movements, and for more analysis on the company, make sure you add it to your Watchlist.

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At the time this article was published

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