The S&P 500 Aerospace & Defense (Industry) and the Dow Jones U.S. Aerospace & Defense index have gained 1.2% in the past five trading sessions on upbeat fourth-quarter reports.
Quarterly releases from Zacks Aerospace sector like Triumph Group Inc. TGI, FLIR Systems, Inc. FLIR and Huntington Ingalls Industries, Inc. HII as well as Lockheed Martin Corp.’s LMT contract win were among past week’s highlights.
Recap of the Past Week’s Important Stories
1. Triumph Group’s adjusted earnings from continuing operations in third-quarter fiscal 2019 (ended Dec 31, 2018) came in at 42 cents per share, which surpassed the Zacks Consensus Estimate of 38 cents by 10.5%. Meanwhile, net revenues of $807.9 million lagged the Zacks Consensus Estimate of $822 million by 1.7% but improved 4.2% year over year.
In the quarter, the company’s operating loss of $16.9 million was narrower than $154.2 million incurred in the year-ago quarter.
As of Dec 31, 2018, Triumph Group’s cash and cash equivalents totaled $28.7 million compared with $35.8 million on Mar 31, 2018. Also, the company reaffirmed its fiscal 2019 guidance (read more: Triumph Group Q3 Earnings Beat, Revenues Lag Estimates).
2. FLIR Systems reported fourth-quarter 2018 adjusted earnings of 62 cents per share, which exceeded the Zacks Consensus Estimate of 60 cents by 3.3%. The company’s revenues declined 9.4% year over year to $448.5 million.
Adjusted operating income came in at $107.9 million compared with $111.7 million in the prior-year quarter, reflecting a 3.4% decline.
At the end of 2018, the company’s cash flow generated from operating activities amounted to $374.2 million, up 21.3% from the prior-year tally of $308.3 million. The company projects adjusted earnings per share in the range of $2.30-$2.36 on revenues of $1.92-$1.95 billion (read more: FLIR Systems Q4 Earnings Beat Estimates, Improve Y/Y). more