We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Trinity Industries (TRN) Q3 Earnings Disappoint?
Read MoreHide Full Article
Trinity Industries Inc. (TRN - Free Report) is scheduled to release third-quarter 2016 results after the market closes on Oct 26.
In the second quarter, the company had posted a positive earnings surprise of 37.78%. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 16.40%. Let’s see how things are shaping up for this announcement.
The company’s third-quarter results are expected to be hurt primarily by weak market conditions. In addition, railcar deliveries are anticipated to decline due to weak demand for railcars. We expect the company’s third-quarter results to suffer from high costs. Adverse foreign currency movement may also hamper the company’s top line.
The Rail Group segment, which recorded disastrous results in the second quarter, is expected to continue its poor run in the third quarter as well. Given the gloomy backdrop, the company expects earnings per share for 2016 in the band of 2.00–$2.30, well below the year-ago figure.
On the brighter side, the company stands to benefit from a favorable financial position, along with moderate levels of debt. Moreover, we are pleased by the company’s efforts to reward shareholders through dividend payments.
Earnings Whispers
Our proven model does not conclusively show that Trinity is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or at least #3 (Hold) for this to happen. Unfortunately, this is not the case here, as elaborated below.
Zacks ESP: Trinity Industries has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 52 cents.
Zacks Rank: Trinity carries a Zacks Rank #5 (Strong Sell). As it is, we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some transportation companies you may want to consider instead, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
JetBlue Airways Corp. (JBLU - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank #3. The company, which will release its third quarter results on Oct 25, has an impressive history with respect to earnings per share. It surpassed the Zacks Consensus Estimate in each of the last four quarters with an average beat of 7.76%.
Genesee & Wyoming Inc. has an Earnings ESP of +5.38% and a Zacks Rank #3. The company, which will release its third-quarter results on Nov 1, has an impressive history with respect to earnings per share. It outpaced the Zacks Consensus Estimate in each of the last four quarters with an average beat of 5.71%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Will Trinity Industries (TRN) Q3 Earnings Disappoint?
Trinity Industries Inc. (TRN - Free Report) is scheduled to release third-quarter 2016 results after the market closes on Oct 26.
In the second quarter, the company had posted a positive earnings surprise of 37.78%. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 16.40%. 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
Factors at Play
The company’s third-quarter results are expected to be hurt primarily by weak market conditions. In addition, railcar deliveries are anticipated to decline due to weak demand for railcars. We expect the company’s third-quarter results to suffer from high costs. Adverse foreign currency movement may also hamper the company’s top line.
The Rail Group segment, which recorded disastrous results in the second quarter, is expected to continue its poor run in the third quarter as well. Given the gloomy backdrop, the company expects earnings per share for 2016 in the band of 2.00–$2.30, well below the year-ago figure.
On the brighter side, the company stands to benefit from a favorable financial position, along with moderate levels of debt. Moreover, we are pleased by the company’s efforts to reward shareholders through dividend payments.
Earnings Whispers
Our proven model does not conclusively show that Trinity is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or at least #3 (Hold) for this to happen. Unfortunately, this is not the case here, as elaborated below.
Zacks ESP: Trinity Industries has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 52 cents.
Zacks Rank: Trinity carries a Zacks Rank #5 (Strong Sell). As it is, we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some transportation companies you may want to consider instead, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Navios Maritime Holdings Inc. , which is expected to report third-quarter earnings on Nov 28, has an Earnings ESP of +16.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
JetBlue Airways Corp. (JBLU - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank #3. The company, which will release its third quarter results on Oct 25, has an impressive history with respect to earnings per share. It surpassed the Zacks Consensus Estimate in each of the last four quarters with an average beat of 7.76%.
Genesee & Wyoming Inc. has an Earnings ESP of +5.38% and a Zacks Rank #3. The company, which will release its third-quarter results on Nov 1, has an impressive history with respect to earnings per share. It outpaced the Zacks Consensus Estimate in each of the last four quarters with an average beat of 5.71%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>