Triumph Group (TGI) Sinks 18% Following Mixed Q1 Results

Triumph Group (NYSE: TGI) is trading down 18% after the company reported Q1 EPS of $1.04, $0.10 better than the analyst estimate of $0.94. Revenue for the quarter came in at $893.3 million versus the consensus estimate of $896.88 million.

GUIDANCE:

Triumph Group sees FY2017 EPS of $3.15-$3.45, which may not compare to the consensus of $5.01. Triumph Group sees FY2017 revenue of $3.6-3.7 billion, versus the consensus of $3.7 billion.

“Triumph’s first quarter results reflected our new four business unit structure, improved cash performance, expanded revenues in Aerospace Structures due to improved deliveries and continued strong operating margins in Integrated Systems and Product Support,” said Daniel J. Crowley, Triumph’s president and chief executive officer. “While the overall earnings were below our expectations as a result of non-recurring charges taken on the strike at our Spokane facility, which has now been resolved without impacting our customers, and program execution challenges, we are retiring execution risks and incorporating the lessons learned as we move ahead on our transformation program. We are confident that the changes we are making will help achieve predictable financial performance and sustainable value creation in the future.”

Mr. Crowley continued, “We are encouraged by our customers’ response to our One Company transformation efforts. Our growing partnership with Lockheed Martin, Northrop Grumman and Spirit AeroSystems, three key Tier 1 customers, demonstrates positive momentum entering fiscal 2017 as we focus on reducing costs, integrating our supply chain and improving on-time delivery and quality. During the first quarter, we strengthened our senior leadership team, announced two facility consolidations, initiated divestiture actions and developed a detailed operational excellence plan. We expect these actions to improve Triumph’s performance in the areas of execution, organic growth and delivering predictable profitability as part of our commitment to our shareholders, customers and employees.”

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

You May Also Be Interested In

• Bristol-Myers Squibb (BMY) stock slips despite earnings beat
• Grainger (GWW) Tops Q1 EPS by 2c, provides guidance
• Unilever PLC (UL) Q1 Revenue Misses Estimates