TriMas Corp. (TRS) Misses Q4 EPS by 8c, Revenues Miss; Offers FY20 EPS Guidance Below Conservative

TriMas Corp. (NASDAQ: TRS) reported Q4 EPS of $0.30, $0.08 worse than the analyst estimate of $0.38. Revenue for the quarter came in at $170.9 million versus the consensus estimate of $225.73 million.

Fourth Quarter 2019

TriMas reported fourth quarter net sales of $170.9 million, an increase of 0.5% compared to $170.1 million in fourth quarter 2018. The Company reported operating profit of $20.8 million in fourth quarter 2019 compared to $23.0 million in fourth quarter 2018. Adjusting for Special Items(1) related to transaction diligence costs, restructuring costs and the reversal of a contingent liability, fourth quarter 2019 adjusted operating profit was $21.2 million compared to $23.2 million in the prior year period, as the impact of slightly higher sales was more than offset by a less favorable product sales mix, higher freight costs and increased conversion costs.

The Company reported fourth quarter 2019 income from continuing operations of $13.4 million, or $0.30 per diluted share, compared to $14.9 million, or $0.32 per diluted share, in fourth quarter 2018. Fourth quarter 2019 adjusted income from continuing operations(1) was $13.9 million, or $0.31 per diluted share, compared to $15.7 million, or $0.34 per diluted share, in the prior year period.

GUIDANCE:

TriMas Corp. sees FY2020 EPS of $1.50-$1.60, versus the consensus of $1.70.

The Company is estimating that 2020 sales growth will be 9% to 11% compared to 2019, with organic sales growth of approximately 1.5% to 2.5%, assuming constant currency. The Company expects full year 2020 adjusted diluted earnings per share to be between $1.50 to $1.60 per share. In addition, the Company is targeting 2020 Free Cash Flow(3) to be greater than 100% of net income.

"We are optimistic about the long-term prospects of our now more focused TriMas portfolio of businesses, despite certain end market and geopolitical uncertainties. Our global teams remain committed to managing our businesses within a culture of operational excellence, while utilizing the tools of Kaizen to drive sustainable improvements," said Amato.

For earnings history and earnings-related data on TriMas Corp. (TRS) click here.

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