Triton's (TRTN) Q3 Earnings In Line, Down On Low Revenues

Triton International Limited’s (NYSE:TRTN) third-quarter 2019 earnings per share (excluding a penny from non-recurring items) of $1.16 were in line with the Zacks Consensus Estimate. The bottom line dipped nearly 1% year over year. Results were hurt by low demand for leasing due to the U.S.-China trade tensions, which is affecting shipping activity, and a weak global economy.

Quarterly revenues of $336.7 million, declined 3.8% year over year due to 5.7% fall in revenues from operating leases.

Equipment trading revenues of $25.8 million inched up 2% from the year-ago quarter’s figure. Trading margin in the quarter under review came in at approximately $4.15 million compared with $5.81 million in the year-ago quarter’s level.

The company generated a return on equity of 16.1% in the reported quarter compared with 16.9% in the year-ago quarter. Total operating expenses decreased slightly to $172.45 million.

Additionally, Triton exited the third quarter with average utilization of 96.7%, down 50 basis points sequentially.

The company bought back 1.6 million shares during the reported quarter. In fact, Triton purchased 8.7 million shares for $277.2 million as of Oct 18 2019, under the share buyback plan cleared last August. Additionally, the board announced a quarterly cash dividend of 52 cents per share. The amount is payable on Dec 20, 2019 to its shareholders of record as of Dec 3.

The company’s board also cleared a cash dividend of 53.125 cents per share on its 8.50% Series A Preferred Shares and a cash dividend of 50 cents per share on its 8% Series B Preferred Shares. Both the dividends are payable on Dec 16 to shareholders of record as of Dec 9.

Outlook

Due to seasonal softness, this Zacks Rank #3 (Hold) company expects key operating metrics to continue to decline over the next several quarters. It expects adjusted net income per share to fall sequentially in the fourth quarter.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Investors interested in the broader Transportation sector are awaiting third-quarter earnings reports from key players like Expeditors International of Washington, Inc (NASDAQ:EXPD) , Air Lease Corporation (NYSE:AL) and Hertz Global Holdings, Inc (NYSE:HTZ) . Hertz will report third-quarter results on Nov 4. Expeditors and Air Lease will announce the same on Nov 5 and Nov 7, respectively.

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