Triumph Group falls after dour FY 2025 forecast

Triumph

23/05/2024 14:04

** Shares of aerospace and defense systems maker Triumph
Group  TGI.N  fall 1.6% to $14.75 premarket
    ** Co forecasts FY 2025 net sales of $1.20 bln, below
analysts' average estimate of $1.28 bln - LSEG data
    ** TGI's Q4 net sales expectation of $358.60 mln, however,
is above estimates of $342.1 mln
    ** "While sales increased in our interiors business in the
fourth quarter, its profit and cash flow continued to lag due to
external cost drivers," says CEO Dan Crowley
    ** Crowley says these cost headwinds could soften with
recovery in narrowbody aircraft rates
    ** "Q4's ops miss was offset by big FCF pull-forward. But
anemic FY25 ops guide & and weak FCF guide exceeding the Q4
pull-forward likely will disappoint investors," says TD Cowen
    ** Co sees 2025 free cash flow of $10 mln to $25 mln, below
estimate of $62.6 mln - LSEG data
    ** Stock is down 9.5% YTD

 (Reporting by Aatreyee Dasgupta)
 ((Aatreyee.Dasgupta@thomsonreuters.com))