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Trinity (TRN) to Report Q1 Earnings: What's in the Cards?

Zacks Equity Research

Trinity Industries, Inc. TRN is scheduled to report first-quarter 2020 results on Apr 29, after market close.

The Zacks Consensus Estimate for first-quarter earnings has been revised downward 7.7% in the past 60 days.

Let’s discuss the factors that might have had an impact on the company’s performance in the quarter to be reported.

Factors to Consider

Trinity’s overall performance is likely to have affected by declining revenues in the quarter to be reported. Sluggish growth in fleet lease, lower volumes of railcars sold and unfavourable average lease rates due to the COVID-19 pandemic are likely to have had a negative impact on revenues in the Railcar Leasing and Management Services Group as well as Rail Products Group segment.

Trinity Industries, Inc. Price and EPS Surprise

 

Trinity Industries, Inc. Price and EPS Surprise

Trinity Industries, Inc. price-eps-surprise | Trinity Industries, Inc. Quote

 

Revenues in theAll Other Group is likely to have declined was due to sluggish demand and lower shipping volumes in Trinity’s highway products operations. Segmental operating loss is likely to have increased in the quarter under review.

What Does the Zacks Model Say?

Our proven model predicts an earnings beat for Trinity this time around. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Trinity has an Earnings ESP of +7.14% as the Most Accurate Estimate is pegged at 15 cents compared with the Zacks Consensus Estimate of 14 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Trinity carries a Zacks Rank #3, currently.

Highlights of Q4 Earnings

In the last reported quarter, Trinity’s earnings (excluding 18 cents from non-recurring items) of 35 cents per share surpassed the Zacks Consensus Estimate by 3 cents. Moreover, the bottom line rallied approximately 35% year over year. Quarterly revenues of $850.7 million also beat the consensus mark of $666.2 million and moved up 15.7% year over year.

 Other Stocks to Consider

Here are a few other stocks from the broader Zacks Transportation sector that investors may consider as our model shows that these have the right combination of elements to beat on first-quarter 2020 earnings.

Southwest Airlines LUV has an Earnings ESP of +22.00% and currently holds a Zacks Rank of 3. The carrier is scheduled to report first-quarter 2020 earnings numbers on Apr 28.

American Airlines Group Inc. AAL has an Earnings ESP of +4.07% and currently has a Zacks Rank of 3. The company is scheduled to report first-quarter 2020 earnings numbers on Apr 30.

Norfolk Southern Corporation NSC has an Earnings ESP of +0.02% and currently has a Zacks Rank of 3. The company is scheduled to report first-quarter 2020 earnings numbers on Apr 29.

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Southwest Airlines Co. (LUV) : Free Stock Analysis Report
 
Norfolk Southern Corporation (NSC) : Free Stock Analysis Report
 
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