DALLAS - Trinity Industries , Inc. (NYSE:TRN) has reported a robust fourth quarter with earnings surpassing analyst expectations. The company announced a quarterly adjusted EPS of $0.82, which was $0.18 higher than the consensus estimate of $0.64. Revenue also exceeded forecasts, coming in at $797.9 million against an anticipated $759.7 million. The stock is up 1.73% in premarket trading.
The company's performance in the fourth quarter reflects a significant improvement, with total company revenues increasing by 35% compared to the same period last year. This growth is attributed to higher external deliveries and favorable pricing in the Rail Products Group.
Despite the positive quarterly results, Trinity Industries' guidance for 2024 presents a cautious outlook. The company forecasts an EPS range of $1.30 to $1.50, falling short of the analyst consensus of $1.94. This guidance takes into account expected improvements in margins across both segments, counterbalanced by lower planned railcar sales and a normalized tax provision.
Jean Savage, CEO and President of Trinity, commented on the year's success, noting a 51% increase in revenue over 2022 and a 47% rise in adjusted EPS year over year (YoY). Savage attributed the leasing group's revenue growth of 13% over the previous year to rising lease rates and fleet utilization, which remained high at 97.5%. However, the Rail Products Group faced challenges in the fourth quarter due to border closures and congestion, impacting deliveries and margins.
Looking ahead, Trinity Industries is realigning its business segments to leverage its maintenance capabilities better, aiming to optimize its lease fleet and grow its services business. With a strong backlog valued at $3.2 billion at the end of the year and a commitment to strategic realignment, the company is poised for continued progress in the coming year.
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