Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Trinity (TRN) Q4 Earnings & Revenues Beat, Increase Y/Y

By Zacks Investment ResearchStock MarketsFeb 19, 2020 10:43PM ET
www.investing.com/analysis/trinity-trn-q4-earnings--revenues-beat-increase-yy-200509219
Trinity (TRN) Q4 Earnings & Revenues Beat, Increase Y/Y
By Zacks Investment Research   |  Feb 19, 2020 10:43PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Trinity Industries’ (NYSE:TRN) fourth-quarter 2019 earnings (excluding 18 cents from non-recurring items) of 35 cents per share surpassed the Zacks Consensus Estimate of 32 cents. Moreover, the bottom line surged approximately 35% year over year. Further, total revenues of $850.7 million beat the Zacks Consensus Estimate of $666.2 million. The top line also improved 15.7% year over year.

Following this better-than-expected performance, shares of the company gained more than 6% in after-hours trading on Feb 19.

Until third-quarter 2018, Trinity reported through five segments, namely Rail Group, Construction Products Group, Inland Barge Group, Energy Equipment Group, and Railcar Leasing and Management Services Group. Post the completion of a spin-off transaction with its infrastructure-related businesses (Acrosa) on Nov 1, 2018, the company primarily reports via the three segments of Railcar Leasing and Management Services Group, Rail Products Group and All Other Group.


The Railcar Leasing and Management Services Group generated revenues of $313.3 million, up 37.8% year over year. The upside was primarily owing to growth in lease fleet, higher volume of railcars sold and favorable average lease rates.

Segmental operating profit summed $100.3 million, up 4.5% from the year-ago quarterly figure owing to factors like higher profits from sale of railcars and lease fleet growth. Moreover, the company’s lease fleet came in at 103,705 units as of Dec 31, 2019. The fleet size grew 4.5% from the December 2018 figure.

Revenues at the Rail Products Group (before eliminations) totaled $887.6 million, up 27.7% from the prior-year number. Segmental operating profit was $97.4 million compared with $44.1 million a year ago. Operating profit improved primarily on the back of higher railcar deliveries and favorable railcar product mix changes. Notably, the group delivered 6,880 railcars and received orders for 2,585 railcars compared with 5,285 and 8,045, respectively, in the year-earlier quarter.

Revenues at the All Other Group were $79.8 million, down 10.7% year over year. The decline was due to sluggish demand and lower shipping volumes in Trinity’s highway products operations. Segmental operating loss came in at $0.6 million against a profit of $8 million a year ago.

The company exited the fourth quarter with cash and cash equivalents of $166.2 million compared with $179.2 million at 2018 end. Meanwhile, debt totaled $4,881.9 million as of Dec 31, 2019 compared with $4,029.2 million at 2018 end. Trinity repurchased 13.7 million shares worth $294.7 million during 2019.

2020 Outlook

For the current year, earnings are anticipated in the range of $1.15-$1.35 per share. The Zacks Consensus Estimate for the same stands at $1.12. Additionally, revenues are estimated in the band of $2.5 billion-$2.7 billion. The consensus mark is pegged at $2.82. The guidance reflects the company’s consistent cost-cutting measures and its balance sheet optimization initiatives. Additionally, free cash flow (before leasing investment) is predicted between $600 million and $650 million.

Zacks Rank & Key Picks

Trinity carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Transportation sector are GATX Corporation (NYSE:GATX) , Azul S.A. (NYSE:AZUL) and Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE:VLRS) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

GATX has an impressive earnings history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 21%. Meanwhile, shares of Azul and Controladora Vuela have rallied more than 30% and 65%, respectively, in a year.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft (NASDAQ:MSFT) in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>



Trinity Industries, Inc. (TRN): Free Stock Analysis Report

Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS): Free Stock Analysis Report

GATX Corporation (GATX): Free Stock Analysis Report

AZUL SA (AZUL): Free Stock Analysis Report

Original post

Zacks Investment Research
Trinity (TRN) Q4 Earnings & Revenues Beat, Increase Y/Y
 

Related Articles

Trinity (TRN) Q4 Earnings & Revenues Beat, Increase Y/Y

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email