A month has gone by since the last earnings report for Triton International (TRTN). Shares have added about 0.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Triton due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Earnings Beat at Triton in Q1
Triton's first-quarter 2023 earnings (excluding 2 cents from non-recurring items) of $2.42 per share surpassed the Zacks Consensus Estimate of $2.25 but declined 12.3% year over year.
Total leasing revenues of $397.7 million missed the Zacks Consensus Estimate of $402.1 million and decreased 4.6% year over year. Revenues from operating leases (accounting for 93% of the top line) fell 5% year over year.
Equipment trading revenues of $19.1 million fell 44% from the year-ago quarter. The trading margin was $1.07 million compared with $4.14 million in the prior-year quarter.
Triton generated a return on equity (adjusted) of 22.5% in the reported quarter compared with 30.3% in the year-ago quarter. Total operating expenses increased 2.4% year over year to $192.7 million.
The company exited first-quarter 2023 with average utilization of 97.6% compared with 99.6% in first-quarter 2022.
Triton repurchased 1.7 million shares in the first quarter of 2023.
TRTN’s board of directors has declared a quarterly cash dividend of 70 cents per share. The dividend will be paid out on Jun 22 to shareholders of record at the close of business on Jun 8.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
At this time, Triton has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Triton has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Triton belongs to the Zacks Transportation - Equipment and Leasing industry. Another stock from the same industry, Air Lease (AL), has gained 0.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.
Air Lease reported revenues of $636.14 million in the last reported quarter, representing a year-over-year change of +6.6%. EPS of $1.06 for the same period compares with $1.36 a year ago.
For the current quarter, Air Lease is expected to post earnings of $1.19 per share, indicating a change of +25.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Air Lease. Also, the stock has a VGM Score of C.
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