NASDAQ$TFIN

Triumph Financial Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Triumph Financial reported net income to common stockholders.

Triumph Financial reported a net income to common stockholders of $15.4 million, or $0.62 per diluted share, for the third quarter of 2022. TriumphPay's invoice volume increased 6.6%, and network transaction volume increased 21.7% despite freight market headwinds.

  • Net income to common stockholders was $15.4 million, or $0.62 per diluted share.
  • TriumphPay's invoice volume increased 6.6%.
  • TriumphPay's network transaction volume increased 21.7%.
  • Schneider National, Inc. has gone live with TriumphPay's audit product.

Headline financials

Total Revenue

$111M

Previous: $104M+6.8%
EPS (adj)

$0.62

Previous: $0.94-34.0%
Free Cash Flow

$16.2M

Previous: $24.4M-33.6%
Net Income

$16.2M

Previous: $24.4M-33.6%
Operating Income

$75.5M

Previous: $77.6M-2.7%
Gross Profit

$108M

Previous: $103M+5.5%
Cash & Equivalents

$422M

Previous: $533M-20.8%
Total Assets

$5.64B

Previous: $6.02B-6.3%
Stock-Based Comp

$4.3M

Previous: $4.45M-3.4%

Revenue & EPS history

Triumph Financial · Revenue · Quarterly

$111M

Q3 2022+6.8%vs Q3 2021
Beat estimate in 2 of 15 quarters(13%)
ActualEstimate

Revenue by segment

Triumph Financial · $59.8M total across 2 segments · Q3 2022

  • Factoring
    $52.5M+7.6%
  • Payments
    $7.27M+14.0%

Forward guidance

The company expects Q1 2023 to be softer than usual, with a possible 10% drop in volumes from Q4 numbers.

Tailwinds

  • No one is going to be surprised by a slowdown in 2023.
  • The company's strategy will continue to be based on the same disciplines that have worked for them for over a decade.
  • The company is in as good of a position to handle a prolonged downturn as they ever have been.
  • Investments made over the past three years to grow the transactional deposit base are bearing fruit in the current interest rate environment.
  • The cost of core deposits has remained low.

Headwinds

  • The freight market began slowing.
  • The company sold non-transportation factoring and equipment lending assets in Q2, resulting in a decline in revenue of about $5 million compared to prior quarters.
  • Q1 2023 is going to be softer than usual, with a possible 10% drop in volumes from Q4 numbers.
  • It is possible that a meltdown in freight is yet to come.
  • All factoring companies are feeling the squeeze of higher labor costs, lower invoice prices, and rising interest rates.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-0.5%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+3.7%

Avg return

30 days after

48%

26 / 54 earnings

Positive

+12.5%

Q2 2020

Best reaction

-13.9%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.9%+1.9%-0.6%
Q4 2025-7.2%-10.6%-16.3%
Q3 2025+7.3%+25.4%+9.4%
Q2 2025-2.6%-2.0%+7.0%
Q1 2025-2.4%-3.0%+22.8%
Q4 2024-13.9%-14.5%-26.6%
Q3 2024+7.9%+9.0%+21.6%
Q2 2024-12.6%-7.7%-10.3%
Q1 2024-9.6%-7.9%+1.7%
Q4 2023-5.2%-6.5%-2.6%
Q3 2023+1.3%+1.0%+17.6%
Q2 2023+0.3%+0.7%-5.2%
Q1 2023-3.3%-0.9%+0.8%
Q4 2022-2.2%+2.9%+15.0%
Q3 2022-10.1%-17.2%+4.7%
Q2 2022+6.9%+4.5%+8.1%
Q1 2022-6.4%-8.1%-19.6%
Q4 2021-12.4%-18.8%-13.9%
Q3 2021+0.0%+6.3%+18.9%
Q2 2021+2.3%+2.9%+10.2%
Q1 2021-0.4%+0.5%-8.6%
Q4 2020+4.2%+10.1%+28.5%
Q3 2020+3.9%+8.1%+11.2%
Q2 2020+12.5%+10.2%+18.4%
Q1 2020-4.3%-8.3%-7.7%
Q4 2019+6.0%+5.2%+10.3%
Q3 2019+1.1%+5.8%+5.5%
Q2 2019+7.8%+9.2%+7.0%
Q1 2019-4.6%-7.3%-2.6%
Q4 2018-9.1%-4.2%+3.0%
Q3 2018-2.0%-7.2%+0.2%
Q2 2018-1.6%-1.4%+2.7%
Q1 2018+2.0%+0.5%+3.8%
Q4 2017+7.2%+6.9%+15.6%
Q3 2017-0.6%+1.3%-5.1%
Q2 2017+7.8%+14.1%+8.7%
Q1 2017-3.7%-9.8%-12.9%
Q4 2016+3.6%+5.9%+5.6%
Q3 2016-4.1%-5.8%+11.4%
Q2 2016+4.1%+2.2%+9.7%
Q1 2016+0.2%
Q4 2015-0.2%
Q4 2012-0.2%
Q3 2015-1.0%
Q2 2015+3.1%
Q1 2014+0.2%
Q1 2015+2.7%
Q2 2014-0.2%
Q4 2013-0.2%
Q1 2013-0.2%
Q4 2014-2.5%
Q2 2013+1.0%
Q3 2013+1.0%
Q3 2014+1.0%

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