Trinity (TRN) Q1 Earnings Miss Estimates, Revenues Beat
Trinity Industries, Inc. (TRN) reported mixed first-quarter 2023 results wherein earnings missed the Zacks Consensus Estimate, but revenues surpassed the same.
Quarterly earnings of 7 cents per share missed the Zacks Consensus Estimate of 32 cents but improved more than 100% year over year. Total revenues of $641.7 million outpaced the Zacks Consensus Estimate of $580 million and grew 35.7% year over year. The top line was aided by a higher volume of external deliveries and improved pricing in the Rail Products Group.
Trinity Industries, Inc. Price, Consensus and EPS Surprise
Trinity Industries, Inc. price-consensus-eps-surprise-chart | Trinity Industries, Inc. Quote
The Railcar Leasing and Management Services Group generated revenues of $203.5 million, up 11.1% year over year. Segmental revenues were boosted by higher utilization and improved lease rates.
Revenues in the Rail Products Group (before eliminations) totaled $637.8 million, up 63.1% year over year. The uptick was backed by higher delivery volumes and favorable pricing, partially offset by the mix of railcars sold. Segmental operating profit was $25.3 million compared with $0.8 million in the year-ago period. The operating profit margin grew to 4% from 0.2% in the year-ago reported quarter.
Trinity exited the first quarter with cash and cash equivalents of $81.9 million compared with $79.6 million at December 2022-end. Debt totaled $5,707.6 million as of Dec 31, 2022, compared with $5,607.6 million at the end of December 2022.
During the reported quarter, TRN generated $99.4 million of net cash from operating activities. Adjusted free cash flow(after investments and dividends) was $36.2 million.
Trinity rewarded its shareholders with dividends worth $21.1 million.
For 2023, Trinity continues to anticipate earnings in the range of $1.50-$1.70 per share. The Zacks Consensus Estimate of $1.67 lies within the guidance.
Currently, Trinity carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s JBHT first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), and a 17% decline in revenue per load in Truckload (JBT). Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%.
JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ DAL first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel prices and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
Alaska Air Group, Inc. ALK reported a first-quarter 2023 loss of 62 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents. In the year-ago quarter, ALK incurred a loss of $1.33 per share.
ALK’s operating revenues of $ 2,196 million missed the Zacks Consensus Estimate of $2,202.5 million. The top line jumped 31% year over year, with passenger revenues accounting for 90.3% of the top line and increasing 31% owing to continued recovery in air-travel demand.
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