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Why Is Triton (TRTN) Up 1.4% Since Last Earnings Report?

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It has been about a month since the last earnings report for Triton International (TRTN - Free Report) . Shares have added about 1.4% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Triton due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Earnings Beat at Triton International in Q3

Triton International's earnings (excluding 60 cents from non-recurring items) of $2.43 per share surpassed the Zacks Consensus Estimate of $2.21. Moreover, the bottom line surged more than 100% year over year owing to strong trade volumes and container demand.

Total leasing revenues of $400.2 million outperformed the Zacks Consensus Estimate of $392.9 million. The top line jumped 22.1% year over year with a 20.2% rise in revenues from operating leases, which accounted for 96.3% of the top line. Equipment trading revenues of $44.42 million soared 70.2% from the year-ago quarter’s figure. Trading margin came in at $9.16 million compared with $3.87 million in the prior-year quarter.

The company generated a return on equity of 29.4% in the reported quarter compared with 15.8% in the year-ago quarter. Total operating expenses inched up 3.7% year over year to $190.48 million. The company exited the third quarter with average utilization of 99.6%, up 20 basis points, sequentially.

Outlook

Triton anticipates fourth-quarter adjusted earnings to increase slightly from the third quarter owing to improved trade volumes. The company expects leasing margin to keep increasing in the fourth quarter due to pick up activity and benefits from a large number of containers picked up during the third quarter. Thanks to strong leasing activity, the company expects profitability and cash flows to remain high.

 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 17.89% due to these changes.

VGM Scores

Currently, Triton has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Triton has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


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