We recently issued an updated research report on Triumph Group, Inc. (NYSE:TGI) . The company’s adjusted earnings from continuing operations in second-quarter fiscal 2019 (ended Sep 30, 2018) came in at 40 cents per share, which surpassed the Zacks Consensus Estimate by a penny. However, the reported figure declined 23.1% from 52 cents per share in the prior-year quarter.
Triumph Group’s aircraft system components continue to remain an important growth platform, buoyed by increasing global demand for jets. Moreover, continuous focus on growth through addition of products and services, expansion of operating capacity and marketing of a range of products will drive the company’s performance.
What’s Driving the Stock?
Commercial narrow-body jet is an important growth driver for Triumph Group, buoyed by increasing global demand along with the company’s strong position pertaining to system components for both A320 and Boeing 737. The company strongly focuses on improving its organic growth based on the addition of products and services, expansion of operating capacity and marketing of a complete product portfolio.
In terms of inorganic growth, the company agreed to collaborate with Quickstep, Australia's leading independent manufacturer of advanced carbon fiber composite components, in the fiscal first quarter. Through this merger, Triumph Group aims at expanding its position within the market with increasing growth opportunities, and also delivering a high performance plus differentiated products to commercial and military original equipment manufacturers (OEMs).
However, volatile energy and commodity prices can put the company’s margins under pressure. Geopolitical security issues and currency fluctuations may further shrink profitability, in addition to declining cargo shipments and aircraft valuations. Again, the company faces the risk of third-party payments, which may hamper credit availability for further product offerings.
Estimates for Triumph Group have been revised upward over the past 30 days. Notably, the company’s bottom line exceeded the consensus mark in two of the trailing four quarters, with average beat of 1.95%.
Triumph Group, Inc. Price and Consensus
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