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Will Supply Chain Disruptions Mar Trinity's (TRN) Q4 Earnings?

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Trinity Industries (TRN - Free Report) is scheduled to report fourth-quarter 2021 earnings on Feb 17, 2022, before market open.

The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters, the average beat being 62.6%.

Let’s see how things are shaping up for Trinity this earnings season:

Trinity Industries, Inc. Price and EPS Surprise

Trinity Industries, Inc. Price and EPS Surprise

Trinity Industries, Inc. price-eps-surprise | Trinity Industries, Inc. Quote

Factors to Note

Improvement in railcar demand is anticipated to have aided Trinity’s fourth-quarter performance. Fleet growth, higher utilization rates and increased services fees are expected to have boosted revenues at the Railcar Leasing and Management Services Group.

However, Trinity’s fourth-quarter performance is expected to have been hurt by supply chain disruptions, including labor shortages. The Rail Products Group segment is expected to have experienced some weakness due to lower deliveries and a shift in the mix of railcar products and services sold.

Trinity’s bottom line might have been hurt by higher selling, engineering and administrative expenses due to employee-related cost increases, such as incentive-based compensations.

What Does the Zacks Model Say?

Our proven model does not conclusively predict an earnings beat for Trinity this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Trinity has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 11 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Trinity carries a Zacks Rank #1.

Highlights of Q3 Earnings

Trinity’s third-quarter 2021 adjusted earnings of 29 cents per share surpassed the Zacks Consensus Estimate of 17 cents. Total revenues of $503.5 million also outperformed the Zacks Consensus Estimate of $432 million. Both the top and the bottom lines improved year over year owing to higher demand and pricing in the highway products business, and increase in external deliveries in the Rail Products Group.

Stocks to Consider

Investors interested in the broader Transportation sector may consider Eagle Bulk Shipping Inc. and Gol Linhas Aereas Inteligentes , as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

Eagle Bulk has an Earnings ESP of +25.88% and a Zacks Rank #3. The company will report fourth-quarter results on Mar 3.

Eagle Bulk’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters while missing in one.

Gol Linhas has an Earnings ESP of +8.29% and a Zacks Rank #3. The company will release fourth-quarter earnings numbers on Mar 11.

Improved domestic air-travel demand as well as the resumption of international operations is expected to have driven Gol Linhas’ fourth-quarter performance.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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