Triumph Group (TGI) Tops Q2 EPS by 4c, Miss on Revenues; Reaffirms FY18 EPS/Revenue Guidance

Triumph Group (NYSE: TGI) reported Q2 EPS of $0.52, $0.04 better than the analyst estimate of $0.48. Revenue for the quarter came in at $745.2 million versus the consensus estimate of $787.74 million.

Outlook

Based on anticipated aircraft production rates and completed divestitures, the Company continues to expect that revenue for fiscal year 2018 will be approximately $3.1 to $3.2 billion, and expects revenue to increase in fiscal year 2019 as development programs enter production and sales from new wins offset sunsetting programs. Additionally, the Company continues to expect fiscal year 2018 adjusted earnings per diluted share of $2.25 to $2.75, and free cash use of $450 to $500 million.

Second Quarter Fiscal 2018 Highlights

• Net sales were $745.2 million.
• Operating income was $18.8 million. On an adjusted basis, operating income was $50.6 million, reflecting an adjusted operating margin of 7%.
• Net loss was ($5.4) million, or ($0.11) per share. On an adjusted basis, net income was $25.7 million, or $0.52 per diluted share.
• Cash used in operations was $200.0 million, and free cash use was $210.7 million.
• Management reaffirms net sales guidance of $3.1 to $3.2 billion and continues to expect organic sales growth in fiscal 2019.
• Management maintains guidance for adjusted earnings per diluted share of $2.25 to $2.75 and free cash use of $450 to $500 million.

GUIDANCE:

Triumph Group sees FY2018 EPS of $2.25-$2.75, versus the consensus of $2.46. Triumph Group sees FY2018 revenue of $3.1-3.2 million, versus the consensus of $3.18 million.

For earnings history and earnings-related data on Triumph Group (TGI) click here.

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