Trinity (TRN) Q4 Earnings & Revenues Beat Estimates, Up Y/Y
Trinity Industries, Inc. (TRN) fourth-quarter 2023 earnings per share (EPS) of 82 cents outpaced the Zacks Consensus Estimate of 66 cents and improved 86.3% year over year.
Total revenues of $797.9 million outpaced the Zacks Consensus Estimate of $779.3 million and grew 34.9% year over year. The top line was aided by higher external deliveries and favorable pricing in the Rail Products Group.
Operating profit of $148.7 million grew 31% year over year. The uptick was backed by higher external deliveries in the Rail Products Group, which was partially offset by lower lease portfolio sales volume.
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 $221.6 million, up 12.2% year over year. Segmental revenues were boosted by improved lease rates and net additions to the lease fleet, as well as acquisition-related revenues included in the current year. Segmental operating profit was $99.5 million, up 31.6%, owing to improved lease rates and net additions to the lease fleet.
Revenues in the Rail Products Group totaled $674 million, up 2.8% year over year on the back of favorable pricing, which was partially offset by lower deliveries. Segmental operating profit was $41.2 million compared with $18.6 million in the year-ago period. The uptick was due to favorable pricing and improved efficiencies, partially offset by lower deliveries and foreign currency fluctuations. The operating profit margin grew to 6.1% from 2.8% in the year-ago reported quarter.
Trinity exited the fourth quarter with cash and cash equivalents of $105.7 million compared with $114 million at the prior-quarter end. Debt totaled $5,754.2 million as of Dec 31, 2023, compared with $5,782.4 million at the end of the prior quarter.
In 2023, TRN generated $309 million of net cash from operating activities. Trinity rewarded its shareholders with $86 million in 2023.
For 2024, TRN expects EPS in the range of $1.30-$1.50 (which excludes items outside of the company’s core business operations).
Currently, Trinity carries a Zacks Rank #2 (Buy). 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 fourth-quarter 2023 EPS of $1.47 missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
JBHT’s total operating revenues of $3,303.70million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.
Delta Air Lines DAL has reported fourth-quarter 2023 EPS (excluding $1.88 from non-recurring items) of $1.28, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
United Airlines Holdings, Inc. UAL reported fourth-quarter 2023 EPS (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13,626 million beat the Zacks Consensus Estimate of $13,546.8 million. The top line increased 9.9% year over year due to upbeat air-travel demand. This was driven by a 10.9% rise in passenger revenues (accounting for 91.1% of the top line) to $12,421 million. Almost 41,779 passengers traveled on UAL flights in the fourth quarter.
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