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Triton's Q3 Earnings View Upeat as Trade Volumes Recover

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At an investor presentation, Triton International Limited provided a bullish update for the September quarter, primarily owing to the rebound in trade volumes. The recovery followed the easing of coronavirus-related restrictions in Europe and the United States.

Moreover, container throughput currently exceeds the pre-coronavirus levels at key export locations in China. Management further stated that demand for leased containers has been upbeat so far in the September quarter.

Owing to the above-mentioned tailwinds, management at Triton expects its third-quarter 2020 earnings per share (on an adjusted basis) to increase at least 20% from the second-quarter actual figure of 86 cents. Adding to this optimism, fourth-quarter earnings are anticipated to grow further owing to higher utilization and lower interest expenses.

Triton is not the sole transportation company to come with a favorable guidance as overall conditions improve. Recently, trucking company Landstar System (LSTR - Free Report) provided an upbeat third-quarter 2020 outlook on the recovery in freight environment. For the third quarter, revenues are now predicted between $1.02 billion and $1.06 billion. This top-line view indicates a marked improvement from the previously projected $885-$935 million. Courtesy of the uptick in overall volumes, railroad operator Kansas City Southern reinstated its current-year financial guidance for certain key metrics.

Airline company Southwest Airlines (LUV - Free Report) provided a positive guidance for the September-quarter average daily cash burn on the back of better close-in leisure travel demand and booking trends. The low-cost carrier now estimates average daily cash burn to be approximately $17 million (earlier forecast was approximately $20 million)

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