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Triton (TRTN) Beats Q3 Earnings Estimates, Hikes Dividend

Zacks Equity Research
·4 min read

Triton International Limited’s TRTN third-quarter 2020 earnings (excluding 47 cents from non-recurring items) of $1.14 per share beat the Zacks Consensus Estimate of $1.06. The bottom line dipped 1.7% year over year, but increased 32.6% from the second quarter of 2020, indicating a strong rebound from the coronavrius-induced slump in business. The company witnessed a spike in trade volumes and container demand during the third quarter with easing coronavirus-led restrictions in the United States and Europe.

However, total leasing revenues of $327.8 million decreased 2.6% year over year due to 2% decline in revenues from operating leases. Equipment trading revenues of $26.09 million inched up 1.2% from the year-ago quarter’s reported figure. Trading margin came in at $3.87 million compared with $4.15 million in the prior-year quarter.

The company generated a return on equity of 15.8% in the reported quarter compared with 16.1% in the year-ago quarter. Total operating expenses increased 6.5% to $183.59 million.
 
This Zacks Rank #2 (Buy) company exited the third quarter with average utilization of 96.1%, up 110 basis points sequentially. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

The company repurchased 0.4 million shares during the third quarter. So far, it has bought back more than 12.5 million shares under the share-buyback plan cleared in August 2018.

Triton International Limited Price, Consensus and EPS Surprise

Triton International Limited Price, Consensus and EPS Surprise
Triton International Limited Price, Consensus and EPS Surprise

Triton International Limited price-consensus-eps-surprise-chart | Triton International Limited Quote

Dividend Hike

Triton's board announced an approximate 10% hike in its quarterly dividend to 57 cents per share (annually: $2.28), payable Dec 23, 2020, to shareholders of record as of Dec 10.

Outlook

Triton anticipates its fourth quarter to benefit from revenues on the large number of containers picked up in the third quarter. Reduced interest expenses are also expected to aid performance. With this, the company estimates adjusted earnings per share to increase 25% in the fourth quarter from the third quarter of 2020.

For 2021, the company remains uncertain about its outlook given the ongoing coronavirus pandemic and its impact on the global economy. However, it expects to continue reaping benefits from reduced interest expenses in 2021 and beyond.

Sectorial Snapshot

Let’s take a look at some of the other recently released earnings reports from companies within the Zacks Transportation sector.

Kansas City Southern KSU, carrying a Zacks Rank #3 (Hold), reported third-quarter 2020 earnings (excluding 5 cents from non-recurring items) of $1.96 per share, beating the Zacks Consensus Estimate of $1.88. Meanwhile, quarterly revenues of $659.6 million lagged the Zacks Consensus Estimate of $662.4 million.

JB Hunt Transport Services Inc. JBHT, carrying a Zacks Rank of 3, reported third-quarter 2020 earnings of $1.18 per share, falling short of the Zacks Consensus Estimate of $1.26. Total operating revenues of $2,472.5 million beat the consensus mark of $2,345.2 million.

United Airlines Holdings Inc. UAL, carrying a Zacks Rank #4 (Sell), incurred a loss (excluding $1.83 from non-recurring items) of $8.16 per share in the third quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of $7.63. Moreover, operating revenues of $2,489 million lagged the Zacks Consensus Estimate of $2,570.1 million.

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Kansas City Southern (KSU) : Free Stock Analysis Report
 
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
 
J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
 
Triton International Limited (TRTN) : Free Stock Analysis Report
 
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