Trinity (TRN) Q3 Earnings Surpass Estimates, Revenues Miss
Trinity Industries, Inc. TRN reported mixed third-quarter 2022 results wherein earnings outpaced the Zacks Consensus Estimate but revenues missed the same.
Quarterly earnings of 34 cents per share outpaced the Zacks Consensus Estimate of 31 cents and improved year over year. The bottom line was backed by improved operating results.
Total revenues of $496.6 million fell short of the Zacks Consensus Estimate of $708 million and declined 1.4% year over year.
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 $194.8 million, up 5% year over year. Segmental revenues were boosted by higher utilization, increased lease fleet size and improved renewal rates.
Revenues in the Rail Products Group (before eliminations) totaled $597.3 million, up 75.7% year over year. Higher delivery volumes, favorable pricing, and price escalation boosted segmental revenues. Segmental operating profit was $26 million against a loss of $3.1 million in the year-ago period.
During the third quarter, Trinity rewarded its shareholders with dividends worth $19 million and repurchased shares worth $14.4 million.
Trinity exited the third quarter with cash and cash equivalents of $58.5 million compared with $59.7 million at the end of June 2022. Debt totaled $5,493.7million as of Sep 30, 2022, compared with $5,539.1 million at the end of June 2022.
Trinity anticipates full-year earnings in the range of 90 cents-$1.10 per share. The Zacks Consensus Estimate of 98 cents 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.
Performance of Other Transportation Companies
Delta AirLines’ DAL third-quarter 2022 earnings (excluding 42 cents from non-recurring items) of $1.51 per share fell short of the Zacks Consensus Estimate of $1.56. Escalated operating expenses induced the earnings miss. Multiple flight cancelations and booking weaknesses due to Hurricane Ian also hurt results. DAL reported earnings of 30 cents 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 $13,975 million, which lagged the Zacks Consensus Estimate of $14,157.2 million. Driven by the high air-travel demand, total revenues increased more than 52% on a year-over-year basis.
United Airlines’ UAL third-quarter 2022 earnings (excluding 5 cents from non-recurring items) of $2.81 per share beat the Zacks Consensus Estimate of $2.21 and our estimate of $2.17. An upbeat in air-travel demand aided results.
In the year-ago quarter, UAL incurred a loss of $1.02 per share when air-travel demand was not as buoyant as in the current scenario. The third quarter of 2022 was the second consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,877 million beat the Zacks Consensus Estimate of $12,709.5 million and our estimate of $12, 631.6 million. UAL’s revenues increased more than 66% year over year owing to an upbeat in air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.2% from third-quarter 2019 (pre-coronavirus) levels.
J.B. Hunt Transport Services, Inc. JBHT reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate. JBHT’s quarterly earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.45 and improved 36.7% year over year.
JBHT’s operating revenues of $3,838.3 million also outperformed the Zacks Consensus Estimate of $3803.4 million. The top line jumped 22.1% year over year on the back of strength across — Dedicated Contract Services, Intermodal, Truckload and Final Mile Services segments. Total operating revenues, excluding fuel surcharges, rose 12.4% year over year.
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