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Triumph Group (TGI) Misses Q2 EPS by 1c, Revenues Beat; Offers FY19 EPS Outlook

November 8, 2018 6:06 AM EST

Triumph Group (NYSE: TGI) reported Q2 EPS of $0.40, $0.01 worse than the analyst estimate of $0.41. Revenue for the quarter came in at $855.1 million versus the consensus estimate of $799.22 million.

  • Net sales were $855.1 million.
  • Operating loss was ($2.0) million. On an adjusted basis, operating income was $35.2 million
  • Net loss was ($14.7) million, or ($0.30) per share. On an adjusted basis, net income was $20.2 million, or $0.40 per diluted share.
  • Cash used in operations was ($131.5) million, and free cash use was ($143.5) million.
  • Management reaffirms guidance for fiscal year 2019 net sales, EPS and cash usage.

“Triumph made important progress against key operational and financial objectives during the second quarter and results were consistent with our expectations, keeping us on track to achieve our fiscal 2019 financial targets,” stated Daniel J. Crowley, Triumph’s president and chief executive officer. “All three of our segments generated organic sales growth on both a year-over-year and sequential basis as we ramped up production on various development and narrow-body programs. As expected, several new, high-quality wins fueled order momentum during the quarter, positioning us to maintain our top-line growth trajectory.”

Mr. Crowley continued, “While our second quarter cash usage increased relative to the first quarter as anticipated, we expect to reverse this trend in the second half of the fiscal year as we advance further towards resolutions on certain cash-intensive Aerospace Structures programs. We reaffirm cash guidance for fiscal 2019, reflecting our confidence that Triumph will meet its stated goal of being cash flow positive in the fourth quarter.”

Mr. Crowley continued, “We remain focused on de-risking the portfolio and strengthening our backlog. During the quarter we closed on a previously announced divestiture in Aerospace Structures and identified other potential opportunities and we are on track to meet our goal of divesting businesses with approximately $300 million of revenue across the portfolio. We are confident that these actions will position Triumph for improved profitability and cash flow during the second half of the fiscal year. With momentum building and a clear path forward, we are well positioned to complete our turnaround and accelerate our objectives of delivering profitable growth and positive cash flow for shareholders.”

GUIDANCE:

Triumph Group sees FY2019 EPS of $1.50-$2.10, versus the consensus of $1.88.

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



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