Triumph Group (TGI) Misses Q3 EPS by 2c, Revenues Beat; Offers FY20 EPS/Revenue Mid-Point Guidance Below Consensus

Triumph Group (NYSE: TGI) reported Q3 EPS of $0.69, $0.02 worse than the analyst estimate of $0.71. Revenue for the quarter came in at $740.7 million versus the consensus estimate of $680.81 million.

Third Quarter Fiscal 2020

• Net sales of $704.7 million
• Operating income of $1.7 million with operating margin of 0.2%; adjusted operating income of $64.0 million with adjusted operating margin of 9.1%
• Net loss of ($13.8) million, or ($0.27) per share; adjusted net income of $35.4 million, or $0.69 per diluted share
• Cash flow provided by operations of $49.9 million, and free cash flow of $39.6 million

"Triumph Group delivered strong third quarter results, in line with our expectations," stated Daniel J. Crowley, Triumph's president and chief executive officer. "Organic revenue was up year-over-year across all three of our business segments, driven by increased volume on Airbus commercial programs and aftermarket demand for military rotorcraft components and engine mounted accessories. Integrated Systems margins were driven by increases in MRO and spares sales, as well as improved operational efficiencies and cost reduction initiatives. Aerospace Structures continued to execute its plan, divesting the Nashville large structures business and exiting legacy programs. We expect these actions to benefit margins in future quarters."

Mr. Crowley continued, "Free cash flow was positive for the quarter and year to date, and we remain on track to deliver positive free cash flow for fiscal year 2020 as we guided. Triumph is a more predictable business as we de-risk our portfolio and backlog and stabilize our cash flows."

Mr. Crowley concluded, "We are focused on our core and I remain confident in Triumph\'s ability to compete, win and create value over the long term for our stakeholders."

GUIDANCE:

Triumph Group sees FY2020 EPS of $2.35-$2.55, versus the consensus of $2.55. Triumph Group sees FY2020 revenue of $2.8-2.9 billion, versus the consensus of $2.87 billion.

Outlook for Fiscal 2020

• Net sales of between $2.8 billion to $2.9 billion
• GAAP earnings per diluted share of between $1.28 and $1.48
• Adjusted earnings per diluted share of between $2.35 to $2.55
• Positive free cash flow of between $0 to $50.0 million

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

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