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
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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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>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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