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Trinity (TRN) Stock Down Nearly 2% Since Q4 Earnings Release
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Trinity Industries’ (TRN - Free Report) fourth-quarter 2021 earnings (excluding $1.29 from non-recurring items) of 8 cents per share missed the Zacks Consensus Estimate of 11 cents. Results were hurt by supply chain disruptions and labor shortages. This earnings miss weighed on investor sentiments, causing shares of the company to decline nearly 2% since the announcement of results on Feb 17.
The bottom line, however, improved significantly year over year on higher revenues. Total revenues of $472.2 million outperformed the Zacks Consensus Estimate of $470.8 million. The top line increased year over year owing to higher external deliveries in the Rail Products Group.
The Railcar Leasing and Management Services Group (before eliminations) generated revenues of $181.2 million, down 4.3% year over year due to lower average lease rates. Lease and management operating profit declined to $73.8 million from $88.2 million a year ago. This downside was caused by lower lease rates and higher fleet operating costs.
Trinity Industries, Inc. Price, Consensus and EPS Surprise
Revenues in the Rail Products Group (before eliminations) totaled $402.1 million, up 28.3% from the prior-year quarter’s number. Higher delivery volumes and competitive pricing drove segmental revenues. Segmental operating profit was $13.4 million compared with $0.1 million in the year-ago period.
The All Other Group (primarily includes results of highway products business) did not generate revenues in the fourth quarter.
During 2021, Trinity rewarded its shareholders with $895 million through dividend payouts and share repurchases. Free cash flow generated during the period was $539 million.
Trinity, sporting a Zacks Rank #1 (Strong Buy), exited the December quarter with cash and cash equivalents of $167.3 million compared with $132 million at 2020 end. You can see the complete list of today’s Zacks #1 Rank stocks here.
Debt totaled $5,170.6 million as of Dec 31, 2021, compared with $5,017 million at the end of 2020.
2022 Outlook
Trinity expects industry deliveries of 40,000-50,000 railcars in 2022. Net investment in lease fleet is estimated to be $450-$550 million. The company anticipates manufacturing capital expenditures of $35-$45 million in 2022. Earnings per share are forecast to be 85 cents-$1.05 in 2022. The Zacks Consensus Estimate for the same is pegged at $1.44.
Sectorial Snapshots
Let’s take a look at some of the other earnings releases by companies within the Zacks Transportation sector.
GATX Corporation (GATX - Free Report) , sporting a Zacks Rank #1, reported fourth-quarter 2021 earnings (excluding 11 cents from non-recurring items) of $1.58 per share, which surpassed the Zacks Consensus Estimate of $1.07. The bottom line surged more than 200% year over year.
GATX’s total revenues of $321 million increased 5.3% year over year, mainly on a 5.2% rise in lease revenues, which came in at $288.4 million. Lease revenues contributed 89.8% to the top line.
Werner Enterprises (WERN - Free Report) , carrying a Zacks Rank #3 (Hold), reported fourth-quarter 2021 earnings (excluding 2 cents from non-recurring items) of $1.13 per share, which surpassed the Zacks Consensus Estimate of 96 cents. The bottom line rose 27% on a year-over-year basis.
Werner’s total revenues of $765.2 million also outperformed the Zacks Consensus Estimate of $725.1 million. The top line increased 23.4% on a year-over-year basis, primarily on higher revenues in the Truckload Transportation Services and Logistics segments.
C.H. Robinson Worldwide (CHRW - Free Report) , carrying a Zacks Rank #3, reported fourth-quarter 2021 earnings of $1.74 per share, which fell short of the Zacks Consensus Estimate of $1.85. However, the bottom line surged 61.1% year over year.
C.H. Robinson’s total revenues of $6,501.8 million outperformed the Zacks Consensus Estimate of $6,190.8 million. The top line jumped 42.9% year over year owing to higher pricing and volumes across most of the company’s service lines.
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Trinity (TRN) Stock Down Nearly 2% Since Q4 Earnings Release
Trinity Industries’ (TRN - Free Report) fourth-quarter 2021 earnings (excluding $1.29 from non-recurring items) of 8 cents per share missed the Zacks Consensus Estimate of 11 cents. Results were hurt by supply chain disruptions and labor shortages. This earnings miss weighed on investor sentiments, causing shares of the company to decline nearly 2% since the announcement of results on Feb 17.
The bottom line, however, improved significantly year over year on higher revenues. Total revenues of $472.2 million outperformed the Zacks Consensus Estimate of $470.8 million. The top line increased year over year owing to higher external deliveries in the Rail Products Group.
The Railcar Leasing and Management Services Group (before eliminations) generated revenues of $181.2 million, down 4.3% year over year due to lower average lease rates. Lease and management operating profit declined to $73.8 million from $88.2 million a year ago. This downside was caused by lower lease rates and higher fleet operating costs.
Trinity Industries, Inc. Price, Consensus and EPS Surprise
Trinity Industries, Inc. price-consensus-eps-surprise-chart | Trinity Industries, Inc. Quote
Revenues in the Rail Products Group (before eliminations) totaled $402.1 million, up 28.3% from the prior-year quarter’s number. Higher delivery volumes and competitive pricing drove segmental revenues. Segmental operating profit was $13.4 million compared with $0.1 million in the year-ago period.
The All Other Group (primarily includes results of highway products business) did not generate revenues in the fourth quarter.
During 2021, Trinity rewarded its shareholders with $895 million through dividend payouts and share repurchases. Free cash flow generated during the period was $539 million.
Trinity, sporting a Zacks Rank #1 (Strong Buy), exited the December quarter with cash and cash equivalents of $167.3 million compared with $132 million at 2020 end. You can see the complete list of today’s Zacks #1 Rank stocks here.
Debt totaled $5,170.6 million as of Dec 31, 2021, compared with $5,017 million at the end of 2020.
2022 Outlook
Trinity expects industry deliveries of 40,000-50,000 railcars in 2022. Net investment in lease fleet is estimated to be $450-$550 million. The company anticipates manufacturing capital expenditures of $35-$45 million in 2022. Earnings per share are forecast to be 85 cents-$1.05 in 2022. The Zacks Consensus Estimate for the same is pegged at $1.44.
Sectorial Snapshots
Let’s take a look at some of the other earnings releases by companies within the Zacks Transportation sector.
GATX Corporation (GATX - Free Report) , sporting a Zacks Rank #1, reported fourth-quarter 2021 earnings (excluding 11 cents from non-recurring items) of $1.58 per share, which surpassed the Zacks Consensus Estimate of $1.07. The bottom line surged more than 200% year over year.
GATX’s total revenues of $321 million increased 5.3% year over year, mainly on a 5.2% rise in lease revenues, which came in at $288.4 million. Lease revenues contributed 89.8% to the top line.
Werner Enterprises (WERN - Free Report) , carrying a Zacks Rank #3 (Hold), reported fourth-quarter 2021 earnings (excluding 2 cents from non-recurring items) of $1.13 per share, which surpassed the Zacks Consensus Estimate of 96 cents. The bottom line rose 27% on a year-over-year basis.
Werner’s total revenues of $765.2 million also outperformed the Zacks Consensus Estimate of $725.1 million. The top line increased 23.4% on a year-over-year basis, primarily on higher revenues in the Truckload Transportation Services and Logistics segments.
C.H. Robinson Worldwide (CHRW - Free Report) , carrying a Zacks Rank #3, reported fourth-quarter 2021 earnings of $1.74 per share, which fell short of the Zacks Consensus Estimate of $1.85. However, the bottom line surged 61.1% year over year.
C.H. Robinson’s total revenues of $6,501.8 million outperformed the Zacks Consensus Estimate of $6,190.8 million. The top line jumped 42.9% year over year owing to higher pricing and volumes across most of the company’s service lines.