Trinity Industries (TRN) Stock Spikes on Earnings Beat, Higher Guidance
8:21 am ET July 24, 2015 (S&P Capital IQ) Print
We keep our 12-month target price at $39, on enterprise value-to-EBITDA near peers. We raise our '15 operating EPS estimate to $2.55 from $2.53 and '16's to $2.62 from $2.59. T posts Q2 EPS of $0.69 vs. $0.62, beating the $0.63 Capital IQ consensus. Sales rose 1.4% and service margin trends were better than expected. We positively view 2.1M wireless subscriber additions (includes 410K postpaid and 995K connected cars) but are cautious of postpaid phone losses. We are optimistic about revenue/cost synergies from the pending DirecTV (DTV 92***) deal, which we see near completion.
with over 100 million in backlog orders. Additionally, in the last quarter, net revenues increased 69.2% year-over-year to $105.9 million compared to $62.6 million. So it goes.
interests of the shareholders if the stated reasons for the merger pan out.
=GREATER SIZE AND SCALE.
=INCREASED PORTFOLIO DIVERSIFICATION; HIGH-QUALITY TENANT BASE.
=INCREASED FINANCIAL STRENGTH AND FLEXIBILITY.
=MORE EFFICIENT OPERATING PLATFORM AND COST SAVINGS.
=SEASONED AND PROVEN LEADERSHIP TEAM WITH STRONG TRACK RECORD OF OF GROWTH AND COMMITMENT TO CORPORATE GOVERNANCE
However, losing 10% feels like a kick in the face after assuming that CSG would be sold for a far price of $9 plus. Looking to the future is very difficult when shareholder lose $332 million (market cap decline) in a matter of hours.
Probably the execs of CSG were desperate to keep and increase their large compensation. If the company were sold. they may have been canned. Additionally, they are going to cut the dividend.
why are people selling off great stocks with solid earnings ( even better future potential) paying anywhere from 3% to 5.2% and very solid funds with a small amount of leverage ( and 6%-to 13% discount from NAV) paying over 6% amortized monthly. Perhaps they crave the .034 % interest paid by the average money market fund.
& generated $1,418.6 million in the first quarter. Even Goldman Sachs who blasted the stock claimed that Windstream could rise higher based on an increase in its sales of its broadband bundles, a sharp recovery in the economy and future mergers and acquisitions in the industry
Sentiment: Strong Buy
with the prospects of higher dividends in the future in order to buy money market funds at .34%, 5-year CDs at 1.46% and a 30 year US bond at 3.15%. PPL is yielding more than double the 10 year US note (2.3%).
amortized monthly with a 10.5 % discount from net asset value.* The average discount from net asset value over a ten year period is 2.3%
*as of June 12.
-Net revenues increased 69.2% year-over-year
-Repaid $2.8 million of term debt, including $1.5 advance payment of remaining 2015 principal requirements on term debt for PM acquisition.
-Consolidated backlog as of March 31, 2015 was $109.6 million
-Book value in the $7 range.
Prospects are good that PPL will raise its dividend sometime in the next year. When money market rates are .34% and 5-year CDs are 1.4%, a 4.8% -5% dividend looks pretty good.
but states that Windstream could rise higher based on an increase in its sales of its broadband bundles, a sharp recovery in the economy and future mergers and acquisitions in the industry. Let us not forget that WIN beat earnings estimates and generated $1,418.6 million in the first quarter.
more than anyone imagines. One would do well to dig through the last 6 earnings reports as presented on the SEC site.