What happened 

Shares of Triumph Group Inc. (NYSE:TGI) fell as much as 18.9% in trading Wednesday after the aviation and industrial company reported fiscal first-quarter earnings. At 12:05 p.m. EDT, the stock was still down 17.7% on the day. 

So what

Revenue fell 12.5% to $781.7 million and the company swung from a net income of $19.7 million a year ago to a loss of $1.9 million, or $0.04 per share. On an adjusted basis, which pulls out one-time costs like restructuring, earnings were $0.24 per share. 

Side view of a large aircraft.

Image source: Getty Images.

Analysts were expecting revenue of $808.6 million and earnings of $0.87 per share, so you can see why investors were shocked by the results. 

Now what

Management said that the decline in results was due to the end of two legacy programs and that ongoing operations are improving as new programs grow. For the full fiscal year, it expects revenue of $3.1 billion to $3.2 billion with adjusted earnings of $2.25 to $2.75 per share. If results hold steady and the company hits the high end of earnings, the price-to-earnings ratio of under 10 times is an attractive level for investors. But I'd like to see revenue at least stabilize before jumping in.

Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.