TriMas (NASDAQ:TRS) Releases Earnings Results, Beats Estimates By $0.02 EPS

TriMas (NASDAQ:TRS) posted its earnings results on Thursday. The industrial products company reported $0.50 EPS for the quarter, beating analysts’ consensus estimates of $0.48 by $0.02, Briefing.com reports. TriMas had a net margin of 104.22% and a return on equity of 6.41%. The firm had revenue of $178.74 million for the quarter, compared to the consensus estimate of $175.16 million. During the same period last year, the firm posted $0.61 EPS. The company’s revenue was down 33.6% on a year-over-year basis.

Here are the key takeaways from TriMas’ conference call:

• Third-quarter results improved sharply: sales rose 7.7% to $178.7 million, operating profit increased 47.9%, and adjusted EPS reached $0.50 versus $0.17 a year earlier. Management reaffirmed full-year adjusted EPS guidance of $1.60–$1.70.
• Packaging delivered 8.8% sales growth and a 40-basis-point margin expansion to 13.8%, supported by broad-based demand, productivity gains, and cost reductions. The company now expects full-year Packaging operating margins of nearly 14%.
• Specialty Products profitability remained under pressure, with operating profit falling to $0.1 million from $2.4 million due to equipment downtime, low labor productivity, throughput constraints, and higher steel costs. Management lowered its full-year Specialty Products margin outlook to 4%–6%, although it expects improvement in the fourth quarter.
• TriMas ended the quarter with more than $1.1 billion in cash and approximately $761 million of net cash, while repurchasing nearly $184 million of shares since the Aerospace divestiture. More than 5% of shares outstanding have been reduced year to date, with approximately $67 million remaining under the authorization.
• The planned sale of the below-average-margin Rapak flexible bag-in-box business is expected to close in early November, sharpening the company’s portfolio focus and improving its Packaging mix. However, management continues to take a disciplined approach to deploying remaining Aerospace proceeds and announced no acquisition.

TriMas Price Performance

TRS traded down $0.79 during trading on Thursday, reaching $38.58. 283,484 shares of the stock were exchanged, compared to its average volume of 438,905. The company has a debt-to-equity ratio of 0.28, a current ratio of 5.44 and a quick ratio of 5.03. The company has a market capitalization of $1.38 billion, a price-to-earnings ratio of 1.61 and a beta of 0.61. TriMas has a 1 year low of $30.43 and a 1 year high of $45.42. The business’s 50 day moving average price is $38.95 and its two-hundred day moving average price is $38.59.

TriMas Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, November 12th. Stockholders of record on Thursday, November 5th will be issued a $0.04 dividend. This represents a $0.16 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Thursday, November 5th. TriMas’s dividend payout ratio (DPR) is currently 0.67%.

Analysts Set New Price Targets

Several equities analysts have issued reports on the company. BWS Financial reaffirmed a “buy” rating and set a $45.00 price objective on shares of TriMas in a report on Monday, August 3rd. Weiss Ratings raised TriMas from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, October 8th. Finally, Wall Street Zen raised TriMas from a “sell” rating to a “hold” rating in a research report on Saturday, August 29th. Three investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $41.50.

TriMas Company Profile

TriMas Corporation (NASDAQ: TRS) is a diversified manufacturer that develops and produces engineered products for the packaging, aerospace and industrial markets. The company serves customers through three primary business segments: TriMas Packaging, TriMas Aerospace and TriMas Specialty Products.

TriMas Packaging manufactures dispensing systems, closures, bottles, jars, cartridges and other packaging components used in consumer, industrial, food, beverage, healthcare and personal-care applications.