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Triton's (TRTN) Q2 Earnings Surpass Estimates, Improve Y/Y

Zacks Equity Research

Triton International Limited’s TRTN second-quarter 2019 earnings per share (excluding 3 cents from non-recurring items) of $1.15 outpaced the Zacks Consensus Estimate by 5 cents and also improved 4.6% year over year. Results were aided by the company’s strong operating performance.

Quarterly revenues totaled $338.6 million, which lagged the Zacks Consensus Estimate of $354.8 million. However, the top line improved 2.7% year over year primarily owing to more than 100% increase in revenues from finance leases.

Equipment trading revenues of $23.2 million increased more than 28% from the year-ago quarter. Trading margin in the quarter under review came in at approximately $4.5 million compared with $4 million in the year-ago period.

The company generated a return on equity of 16.2% in the reported quarter compared with 16.4% a year ago. However, total operating expenses increased 5.5% to $174 million.

These apart, Triton exited the second quarter with average utilization of 97.2%, down 40 basis points sequentially. Container pick-up volumes were slow during the quarter mainly due to the trade dispute between the United States and China.

Moreover, the company bought back 2.3 million shares during the reported quarter. In fact, Triton purchased 7.1 million shares as of Jul 19, 2019, under the share buyback plan cleared last August. Additionally, the company’s board announced a quarterly cash dividend of 52 cents per share. The amount is payable Sep 26 to its shareholders of record as of Sep 5.

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

Outlook

This Zacks Rank #3 (Hold) company expects leasing activity to improve in the third quarter, even though the levels will be below those witnessed in peak seasons. Investments in new containers are anticipated to be limited throughout the current year.

Triton’s third-quarter adjusted EPS is anticipated to remain steady when compared with that in second-quarter 2019. EPS levels in the fourth quarter is likely to be dependent on the level of demand growth in the latter half of 2019.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Investors interested in the Zacks Transportation sector are keenly awaiting second-quarter 2019 earnings reports from key players like C.H. Robinson CHRW, SkyWest SKYW and GOL Linhas GOL. While C.H. Robinson is scheduled to report second-quarter 2019 results on Jul 30, SkyWest and GOL Linhas will do so on Jul 31 and Aug 1, respectively.

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SkyWest, Inc. (SKYW) : Free Stock Analysis Report
 
Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report
 
Triton International Limited (TRTN) : Free Stock Analysis Report
 
C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
 
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