Dj Trimas Corporation, Inst Holders, 3Q 2024 (Trs)

TriMas Corporation’s TRS shares gained 10% since it reported its third-quarter 2024 earnings on Nov. 4. TriMas reported third-quarter 2024 adjusted earnings per share (EPS) of 43 cents (including non-cash compensation expenses), which missed the Zacks Consensus Estimate of 57 cents. The bottom line declined 31.7% from the prior-year quarter due to weak demand in the Specialty Products segment and delayed shipments due to a 10-week work stoppage at an aerospace location.

Despite weaker-than-expected earnings, TRS shares were buoyed by some positive developments. While sales declined in the Specialty Products segment, it achieved a sequential 660 basis point margin improvement attributed to the cost reduction actions implemented in the second quarter of 2024. TriMas noted increased quoting and bookings for the segment, indicating a recovery in its top line in 2025, which, combined with the cost containment, will likely result in improved margins for the segment next year. Also, in the packaging segment, the food and beverage end markets posted positive year-over-year growth for the first time in 2024. The recovery in these key markets bodes well for the segment.

TriMas Corporation Price, Consensus and EPS Surprise

TriMas Corporation price-consensus-eps-surprise-chart | TriMas Corporation Quote

TriMas also inked a deal to acquire Germany-based GMT Aerospace, a manufacturer of tie rods used in a range of structural aerospace applications. The acquisition, expected to close in the first quarter of 2025, will add the first manufacturing location in Europe for the aerospace segment. GMT Aerospace’ annualized sales are approximately EUR20 million.

Including the impacts of one-time items, the company reported an EPS of 6 cents compared with the year-ago quarter's 40 cents.

The company's revenues decreased 2.5% year over year to $229 million. Organic sales growth in packaging and aerospace product lines was offset by lower market demand in the Specialty Products segment. Overall, organic sales fell 2.3% in the quarter. The top line missed the Zacks Consensus Estimate of $241 million.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

TriMas’ Q3 Costs & Margins

The cost of sales fell 1% year over year to $178 million in the reported quarter. Gross profit declined 7.6% year over year to $51.7 million. The gross margin was 22.5% compared with 23.8% in the prior-year quarter.

Selling, general and administrative expenses rose 37.7% year over year to $44.5 million. Adjusted operating profit declined 18.7% year over year to $23 million. The adjusted operating margin contracted to 9.9% from the prior-year quarter’s 11.8%.

TRS Q3 Segment Performances

Packaging: Net sales came in at $130 million compared with the year-ago quarter’s $117 million. The upside was driven by organic growth within the beauty & personal care, food & beverage, industrial and home care end markets.

The figure was higher than our estimate of $126 million. Organic sales rose 12.3% year over year. Adjusted operating profit fell 2.5% year over year to $19 million in the reported quarter. We had projected the segment’s adjusted operating profit at $19 million.

Aerospace: Net sales increased 4.8% year over year to $71 million, attributed to stronger demand. The figure missed our estimate of $73 million. Organic sales rose 4.8%. The segment’s results in the quarter were impacted by delayed shipments from a 10-week work stoppage at one of its facilities, which has since been resolved.

The segment reported an adjusted operating profit of $9 million, up 4.6% year over year. We had projected the segment’s adjusted operating profit at $9 million.

Specialty Products: The segment's revenues decreased 44.8% year over year to $28 million due to lower demand. Revenues were lower than our estimate of $44 million. Operating profit fell 77.6% year over year to $2.4 million. We had projected the segment’s adjusted operating profit at $6.4 million.

TriMas’ Q3 Cash Flow & Balance Sheet Updates

In the first nine months of 2024, TriMas repurchased approximately 771,067 of its outstanding common stock for $19.3 million. The company generated $22 million of adjusted cash flow from operations in the quarter under review compared with $31 million in the prior-year quarter.

TRS ended the quarter with $26.9 million of cash on hand compared with $34.8 million reported at the end of 2023. The company had $210.2 million of cash and available borrowing capacity under its revolving credit facility. As of Sept. 30, 2024, the total debt was $410 million compared with $396 million as of Dec. 31, 2023.

TRS’ 2024 Guidance

TriMas continues to expect an adjusted EPS of $1.70-$1.90 for 2024.

TriMas’ Price Performance

TRS shares have gained 16.8% in the past year compared with the industry’s 84.5% growth.

TRS’ Zacks Rank

TriMas carries a Zacks Rank #5 (Strong Sell) at present.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

TriMas’ Peer Performances

Kaiser Aluminum KALU reported third-quarter adjusted EPS of 51 cents, which missed the Zacks Consensus Estimate of 67 cents. The bottom-line figure increased 11% from the year-ago quarter.

Net sales of KALU rose 0.5% year over year to $748 million but missed the consensus estimate of $773 million.

Northwest Pipe Co. NWPX came out with third-quarter earnings of $1.02 per share, beating the Zacks Consensus Estimate of 85 cents per share. This compares with earnings of 58 cents per share a year ago.

Northwest Pipe posted revenues of $130 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate of $127 million. The top line increased 9.2% year over year.

ESAB Corporation ESAB came out with third-quarter earnings of $1.25 per share, beating the Zacks Consensus Estimate of $ 1.12 per share. This compares with earnings of $1.08 per share a year ago.

ESAB posted revenues of $636 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate of $629 million. The top line fell 6.6% year over year.

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