Triumph Group (TGI) has been benefiting from acquisitions and internal manufacturing, and the recent Vought acquisition has been highly accretive to earnings. The reported EPS of $1.33 in the first quarter surpassed the Zacks Consensus Estimate of $1.08.
Management expects the acquisition to add approximately $1.10 to the earnings estimate in fiscal 2011 and hence raised the guidance to approximately $6.00 per share, an approximately 17.0% increase from fiscal 2010. The Zacks Estimate is even higher at $6.14.
Moreover, the company’s focus on growing its core businesses along with its strict cost-control strategy will help it to profit in the long run. Thus, we upgrade our recommendation on the stock from Neutral to Outperform.
TRIUMPH GRP INC (TGI): Free Stock Analysis Report
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