Why Is Triton (TRTN) Down 0.9% Since Last Earnings Report?
A month has gone by since the last earnings report for Triton International (TRTN). Shares have lost about 0.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Triton due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Earnings Beat at Triton in Q2
Triton's second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $2.38 per share surpassed the Zacks Consensus Estimate of $2.29. The bottom line, however, declined 18.5% year over year.
Total leasing revenues of $386.5 million missed the Zacks Consensus Estimate of $398.1 million and decreased 8.3% year over year. Revenues from operating leases (accounting for 93% of the top line) fell 8.2% year over year.
Equipment trading revenues of $26.4 million plunged 45% from the year-ago quarter. The trading margin was $1.91 million compared with $6.4 million in the prior-year quarter.
Triton generated return on equity (adjusted) of 21.2% in the reported quarter compared with 29.8% in the year-ago quarter. Total operating expenses increased 2.1% year over year to $196.9 million.
The company exited second-quarter 2023 with an average utilization of 97% compared with 99.4% in second-quarter 2022.
TRTN’s board of directors has declared a quarterly cash dividend of 70 cents per share. The dividend will be paid out on Sep 22, to shareholders of record at the close of business on Sep 8.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
At this time, Triton has an average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Triton has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Triton International Limited (TRTN) : Free Stock Analysis Report
