TriMas Earnings: Here’s Why Investors are Happy Now

TriMas Corporation (NASDAQ:TRS) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 7.80%.

TriMas Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 13.11% to $0.69 in the quarter versus EPS of $0.61 in the year-earlier quarter.

Revenue: Rose 11.69% to $378 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: TriMas Corporation reported adjusted EPS income of $0.69 per share. By that measure, the company beat the mean analyst estimate of $0.66. It beat the average revenue estimate of $361.31 million.

Quoting Management: “Our second quarter results are as expected with 11.7% sales growth and a 19.7% increase in income from continuing operations attributable to TriMas Corporation(1) compared to second quarter 2012,” said David Wathen, TriMas President and Chief Executive Officer. “In addition, we delivered a record second quarter $0.69 in diluted earnings per share from continuing operations (excluding Special Items)(1), while absorbing the effects related to several acquisitions and approximately 6% higher weighted average shares outstanding for second quarter 2013, as compared to second quarter 2012. We continued to effectively invest in future growth and productivity programs, and we successfully lowered our interest expense, reduced our tax rate and generated cash as planned.

“In the midst of a challenging global economic environment, we continue to identify the bright spots and successfully execute on new product introductions, geographic expansion and market share initiatives, as well as leverage our recent bolt-on acquisitions. These initiatives have contributed to our year-over-year sales increases in five of our six segments during the second quarter. We also continued with footprint consolidation projects within our Cequent segments, moving toward more efficient and flexible manufacturing facilities.

Key Stats (on next page)…

Revenue increased 11.91% from $337.78 million in the previous quarter. EPS increased 56.82% from $0.44 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.65 and has not changed. For the current year, the average estimate has moved up from a profit of $2.21 to a profit of $2.22 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)