Trinity Industries Inc. (NYSE:TRN) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Trinity Industries Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 37.88% to $0.91 in the quarter versus EPS of $0.66 in the year-earlier quarter.
Revenue: Rose 0.82% to $932.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Trinity Industries Inc. reported adjusted EPS income of $0.91 per share. By that measure, the company beat the mean analyst estimate of $0.81. It missed the average revenue estimate of $972.9 million.
Quoting Management: “I am pleased with our strong financial results for the first quarter,” said Timothy R. Wallace, Trinity’s Chairman, CEO and President. “Our performance was positively impacted by our ability to align our manufacturing capacity with the strong demand for our products that serve the oil, gas, and chemical industries. Our employees are doing an outstanding job of converting production capacity to meet customer needs for products that support these industries. Demand for railcars that serve the oil, gas, and chemical industries in North America surged during the first quarter contributing to a record backlog for the Rail Group of $5.1 billion. We achieved additional operating efficiencies during the quarter, most noticeably in the Rail Group. Our Energy Equipment Group continued to show solid improvement during the first quarter as our wind towers facilities operated at more efficient levels than last year.”
Key Stats (on next page)…
Revenue increased 1.33% from $920.7 million in the previous quarter. EPS increased 1.11% from $0.90 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.94 to a profit $0.97. For the current year, the average estimate has moved up from a profit of $3.65 to a profit of $3.79 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)