Back to top

Image: Bigstock

Triton International (TRTN) Earnings Beat Estimates in Q2

Read MoreHide Full Article

Triton International Limited reported mixed second-quarter 2018 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same.

Earnings per share (excluding 20 cents from non-recurring items) of $1.10 surpassed the Zacks Consensus Estimate of $1.06 and improved significantly year over year. The bottom line was boosted by a lower effective tax rate among other factors. The earnings beat pleased investors, sending the stock up 2% on Aug 3 to close the trading session at $36.59.

Quarterly revenues of $329.8 million missed the Zacks Consensus Estimate of $333.2 million. But the top line improved 17% year over year, primarily owing to 17.7% growth in revenues from operating leases.

The company generated a return on equity of 16.4% in the reported quarter as compared with 11.2% a year ago. However, total operating expenses increased 1.4% to $164.8 million.

Equipment trading revenues of $18.1 million improved 41.9% from the year-ago quarter. Trading margin in the quarter came in at approximately $4 million compared with $1.3 million in the year-ago quarter. The uptick was primarily owing to higher trading volumes.

The company exited the second quarter with utilization of 98.8% on the back of robust pickup in activity among other favorable factors. Furthermore, the company rewarded shareholders to the tune of $41.6 million through dividends.

Effective tax rate reduced to 11.3% in the second quarter from 20% a year ago mainly due to the new tax law (Tax Cuts and Jobs Act).

 

Triton International Limited Price, Consensus and EPS Surprise

 

Triton International Limited Price, Consensus and EPS Surprise | Triton International Limited Quote

Share Repurchase and Dividend Payout

The company’s board of directors has authorized up to $200 million for share repurchase. Additionally, the company announced a quarterly cash dividend of 52 cents per share, payable on Sep 25, 2018, to shareholders of record as of Sep 4.

Outlook

Triton expects to continue performing well in the second half of the year. Demand for the company’s containers is anticipated to remain strong, thereby driving growth. Favorable market conditions are also expected to boost results in the remaining quarters of 2018.

The company expects a sequential increase in adjusted net income in the remaining quarters of the year.

Zacks Rank & Upcoming Releases

Triton currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors interested in the broader Transportation Sector are awaiting second-quarter 2018 earnings reports from key players, namely, Star Bulk Carriers Corp. (SBLK - Free Report) , Expeditors International of Washington, Inc. (EXPD - Free Report) and Copa Holdings S.A. (CPA - Free Report) . Star Bulk and Expeditors International will release results on Aug 7. Copa Holdings will announce the same on Aug 8.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>