Shares of Triumph Group (NYSE: TGI) plummeted by 21% in premarket trading after the aerospace and defense supplier announced a third-quarter loss. The company cited industry-wide supply-chain issues as the main reason for the decline.
Sales and Earnings Update
For the fiscal third quarter ending on December 31, Triumph reported sales of $285 million, which fell short of analysts’ expectations of $368 million. However, on an organic basis, excluding the impact of the sale of Triumph’s product-support business, sales increased by 13%.
Triumph also suffered a quarterly loss of $15.9 million, or 20 cents per share, compared to a profit of $11 billion, or 8 cents per share, in the same period last year. Adjusted loss per share stood at 16 cents, while analysts predicted earnings of 14 cents per share.
Supply Chain Constraints Impact Deliveries
According to Chief Executive Dan Crowley, the decline in earnings in the quarter was primarily due to a finite set of industry-wide supply chain constraints that resulted in delivery disruptions. However, he reassured investors that the current quarter is expected to be strong due to deferred orders and other factors.
Updated Sales Guidance
Triumph Group revised its fiscal-year sales guidance to reflect the sale of its product-support business. The company now expects organic sales growth of 11% to 14%, compared to the previous guidance of 10% to 13%.
