| Will TriMas Corp. (TRS) Miss Earnings Estimates in Q4? - Analyst Blog | |
| | |
|
TriMas Corporation (TRS) is set to report fourth-quarter 2014 results on Feb 25, before the opening bell. Last quarter, this diversified global manufacturer of engineered and applied products posted an earnings surprise of 4.44%. TriMas has outpaced the Zacks Consensus Estimate in the three of the last four quarters, with an average earnings surprise of 2.50%. Let’s see how things are shaping up prior to this announcement.
Factors to Consider
TriMas has announced its plan to spin off its truck and trailer accessories unit, Cequent. The spin-off will not only allow the company to focus on its core markets but also to serve its global customers with quality, speed and agility, thereby enabling it to capture additional growth opportunities, while enhancing margins through continuous productivity and lean initiatives.
Moreover, TriMas continues to grow and expand in geographies, and execute cost savings and productivity initiatives by reducing cycle times. Growing revenue via new products and expanding its presence in non-U.S. markets will also drive growth. The company has also been witnessing persistent growth in the packaging markets. In the energy end market, even though TriMas sees increased demand North American, the product mix is heavily weighted toward the less profitable standard products. The company is focused on improving margins in the business and has recently closed a less profitable branch in China and restructured its Brazilian energy business. The aerospace distribution end market continues to show softness in order rates and demand as commercial aircraft manufacturers are adjusting their ordering practices.
Hence, TriMas continues to face both external market pressure and operational challenges in its Energy and Aerospace businesses in the fourth quarter. Even though the company has initiated necessary actions to improve performance of these segments, it will take time to realize the benefits.
Earnings Whispers?
Our proven model does not conclusively show that TriMas is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here as you will see below.
Negative Zacks ESP: The Expected Surprise Prediction or ESP for TriMas is 0.00% as the Most Accurate Estimate of 37 cents is in line with the Zacks Consensus Estimate.
Zacks Rank #4 (Sell): TriMas currently holds a Zacks Rank #4. We caution against stocks with Zacks Rank #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Century Aluminum Co. (CENX) with an Earnings ESP of +7.58% has a Zacks Rank #3 (Hold).
TRI Pointe Homes, Inc. (TPH) has an earnings ESP of +12.50% and a Zacks Rank #1 (Strong Buy).
Acuity Brands, Inc. (AYI) has an earnings ESP of +0.96% and a Zacks Rank #1. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TRIMAS CORP (TRS): Free Stock Analysis Report CENTURY ALUM CO (CENX): Free Stock Analysis Report TRI POINTE HOME (TPH): Free Stock Analysis Report ACUITY BRANDS (AYI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
|
|
| |
ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Century Aluminum is a producing company based in United states of america. Century Aluminum is listed in United States of America. Its market capitalisation is US$ 1.5 billions as of today (€ 1.4 billions). Its stock quote reached its lowest recent point on March 06, 2009 at US$ 1.06, and its highest recent level on October 14, 2024 at US$ 17.41. Century Aluminum has 87 260 000 shares outstanding. |