Why Triumph Group Stock Rocketed 45% Higher Today
Shares of aerospace company Triumph Group (NYSE: TGI) skyrocketed at the start of trading on Thursday, rising by nearly 45% in early action. The stock was still up by roughly 33% at 10:30 a.m. EDT today. This big gain comes just a day after the stock rose sharply on news about developments (an asset sale and the inking of a supply contract with Boeing, among other things) that will allow it to better weather the impacts of COVID-19. The big news today, meanwhile, involved earnings.
Triumph reported adjusted earnings per share of $0.69 for the fiscal fourth quarter of 2020, a figure handily beating Wall Street's consensus estimate of $0.54. That said, there was a lot of complexity in the quarter, including the impact of asset sales, restructuring efforts, and one-time writedowns, so the GAAP numbers were anything but pretty.
But the key takeaway from the quarterly results was the fact that Triumph appears to be regaining its footing. Not too long ago, investors were concerned that it wouldn't survive the impact of COVID-19 on the aerospace industry. The revised view here is further buttressed by the company's efforts to cut costs and its success in amending a credit facility.
Source Fool.com
