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Trinity Industries (TRN) Q2 Earnings: A Beat in the Cards?
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Trinity Industries Inc.(TRN - Free Report) -- a Texas-based provider of products and services to the energy, transportation, chemical, and construction sectors worldwide -- is scheduled to report second-quarter 2016 results on Jul 21, after market close.
Last quarter, the company posted a negative earnings surprise of 7.58%. However, the company’s earnings surpassed the Zacks Consensus Estimate in three out of the previous four quarters, with an average beat of 12.75%. Let’s see how things are shaping up for this announcement.
Our proven model shows that the company is likely to beat the Zacks Consensus Estimate because it has the right combination of two key ingredients.
Zacks ESP: TrinityIndustries has an Earnings ESP of +2.22%. This is because the Most Accurate estimate stands at 46 cents while the Zacks Consensus Estimate is pegged lower at 45 cents. This is meaningful and a leading indicator of a likely positive earnings surprise.
Zacks Rank: TrinityIndustries has a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a significantly higher chance of beating earnings estimates. Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of Trinity Industries’ Zacks Rank #3 and +2.22% ESP makes us confident of an earnings beat this time around.
What is Driving the Better-than-Expected Earnings?
Trinity Industries is a diversified industrial company that owns market-leading businesses, which provide products and services to the energy, transportation, chemical, and construction sectors.
We are impressed by the company’s efforts to reward shareholders through dividend payments. In May, Trinity declared a quarterly dividend of 11 cents for each share. Moreover, a wholly-owned subsidiary of the company, Trinity Structural Towers, Inc. (“TSTI”) received an order of amount $940 million for the manufacture of wind towers. We also expect an update on railcar orders on the second quarter conference call. On the bright side, the company stands to benefit from a favorable financial position, along with moderate levels of debt.
Meanwhile, the adverse foreign currency movement may dent the company’s bottom line in the second quarter.
Stocks to Consider
Here are some other transportation companies to consider as our model shows that these also have the right combination of elements to post an earnings beat this quarter.
United Parcel Service (UPS - Free Report) with an earnings ESP of +2.11% and a Zacks Rank #2.
Latam Airlines Group SA with an earnings ESP of +166.67% and a Zacks Rank #2.
Ardmore Shipping Corporation (ASC - Free Report) with an earnings ESP of +7.69% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Trinity Industries (TRN) Q2 Earnings: A Beat in the Cards?
Trinity Industries Inc.(TRN - Free Report) -- a Texas-based provider of products and services to the energy, transportation, chemical, and construction sectors worldwide -- is scheduled to report second-quarter 2016 results on Jul 21, after market close.
Last quarter, the company posted a negative earnings surprise of 7.58%. However, the company’s earnings surpassed the Zacks Consensus Estimate in three out of the previous four quarters, with an average beat of 12.75%. Let’s see how things are shaping up for this announcement.
TRINITY INDS IN Price and EPS Surprise
TRINITY INDS IN Price and EPS Surprise | TRINITY INDS IN Quote
Why a Likely Positive Surprise?
Our proven model shows that the company is likely to beat the Zacks Consensus Estimate because it has the right combination of two key ingredients.
Zacks ESP: TrinityIndustries has an Earnings ESP of +2.22%. This is because the Most Accurate estimate stands at 46 cents while the Zacks Consensus Estimate is pegged lower at 45 cents. This is meaningful and a leading indicator of a likely positive earnings surprise.
Zacks Rank: TrinityIndustries has a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a significantly higher chance of beating earnings estimates. Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of Trinity Industries’ Zacks Rank #3 and +2.22% ESP makes us confident of an earnings beat this time around.
What is Driving the Better-than-Expected Earnings?
Trinity Industries is a diversified industrial company that owns market-leading businesses, which provide products and services to the energy, transportation, chemical, and construction sectors.
We are impressed by the company’s efforts to reward shareholders through dividend payments. In May, Trinity declared a quarterly dividend of 11 cents for each share. Moreover, a wholly-owned subsidiary of the company, Trinity Structural Towers, Inc. (“TSTI”) received an order of amount $940 million for the manufacture of wind towers. We also expect an update on railcar orders on the second quarter conference call. On the bright side, the company stands to benefit from a favorable financial position, along with moderate levels of debt.
Meanwhile, the adverse foreign currency movement may dent the company’s bottom line in the second quarter.
Stocks to Consider
Here are some other transportation companies to consider as our model shows that these also have the right combination of elements to post an earnings beat this quarter.
United Parcel Service (UPS - Free Report) with an earnings ESP of +2.11% and a Zacks Rank #2.
Latam Airlines Group SA with an earnings ESP of +166.67% and a Zacks Rank #2.
Ardmore Shipping Corporation (ASC - Free Report) with an earnings ESP of +7.69% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>