Triumph Group Earnings Preview

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Triumph Group (NYS: TGI) beat estimates by $0.11 last quarter and investors are hoping it can beat them again. The company will unveil its latest earnings on Monday, Jan. 30. Triumph Group designs, engineers, manufactures and sells products for the aviation and aerospace industries.

What analysts say:

  • Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Analysts like Triumph Group better than competitor Spirit AeroSystems Holdings overall. Fifteen out of 21 analysts rate Spirit AeroSystems Holdings a buy compared to 12 of 12 for Triumph Group. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $834 million in revenue this quarter. That would represent a rise of 2.9% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $1.13 per share. Estimates range from $1.04 to $1.30.

What our community says:
CAPS All-Stars are strongly supporting the stock, with 98.6% granting it an "outperform" rating. The greater community backs the All-Stars, as 96.5% give it a rating of "outperform." Fools are keen on Triumph Group, though the message boards have been quiet lately with only 71 posts in the past 30 days. Even with a robust four out of five stars, Triumph Group's CAPS rating falls a little short of the community's upbeat outlook.

Management:
Triumph Group's profit has risen year-over-year by an average of more than threefold over the past five quarters. Revenue has now gone up for three straight quarters.

Now, a look at how efficient management has been at running the business. Margins are a representation of how efficiently a company captures portions of sales dollars. Triumph Group has seen an increase in its operating margins year-over-year for the past two quarters. Operating margins measure what percentage of a company's revenue remains after factoring in the cost of running the business. See how Triumph Group has been doing for the last four quarters: 

QuarterQ2Q1Q4Q3
Gross Margin25.2%23.2%22.8%22.2%
Operating Margin13.7%12.5%11.8%10.7%
Net Margin7.4%5.9%5.7%5.5%
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