Triumph Group Earnings Preview

Motley Fool Staff
Updated

After beating estimates last quarter by $0.15, Triumph Group (NYS: TGI) has set the standard for itself. The company will unveil its latest earnings on Monday. 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. Eleven out of 18 analysts rate Spirit AeroSystems Holdings a buy compared to 11 of 11 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 $840.5 million in revenue this quarter. That would represent a rise of 9.3% from the year-ago quarter.

  • Wall Street earnings expectations: The average analyst estimate is earnings of $1.04 per share. Estimates range from $0.97 to $1.08.

What our community says:
CAPS All-Stars are solidly behind the stock with 95.9% granting it an outperform rating. The community at large agrees with the All-Stars with 96.6% assigning it a rating of outperform. Fools are keen on Triumph Group, though the message boards have been quiet lately with only 68 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 fourfold over the past five quarters. The company's gross margin shrank by 3.5 percentage points in the last quarter. Revenue rose 108% while cost of sales rose 117.8% to $648.8 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

Q1

Q4

Q3

Q2

Gross Margin

23.2%

22.8%

22.2%

22.8%

Operating Margin

12.5%

11.8%

10.7%

11.2%

Net Margin

5.9%

5.7%

5.5%

5.4%

For all our Triumph Group-specific analysis, including earnings and beyond, add Triumph Group to My Watchlist.

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At the time thisarticle was published

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