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Triton (TRTN) Down 3.3% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for Triton International (TRTN - Free Report) . Shares have lost about 3.3% in that time frame, outperforming the S&P 500.

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

Earnings Beat at Triton in Q1

Triton's earnings (excluding 2 cents from non-recurring items) of $2.76 per share surpassed the Zacks Consensus Estimate of $2.63. The bottom line jumped 44.5% year over year owing to strong trade volumes and container demand.

Total leasing revenues of $417.1 million meet the Zacks Consensus Estimate. The top line jumped 20.3% year over year, driven by more than 300% year-over-year rise in revenues from finance leases. Revenues from operating leases (which accounted for 90.6% of the top line) grew marginally year over year.  

Equipment trading revenues of $34.12 million soared 31.5% from the year-ago quarter’s figure. Trading margin came in at $4.14 million compared with $8.14 million in the prior-year quarter.

Triton generated a return on equity of 30.3% in the reported quarter compared with 30.7% in the year-ago quarter. Total operating expenses increased 10% year over year to $188.2 million. Triton exited the first quarter with average utilization of 99.6%, flat on a sequential basis. 

Outlook

Adjusted net income per share in the second quarter is likely to decrease slightly from the first- quarter results.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, Triton has a strong Growth Score of A, though it is lagging a lot 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

Triton has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Triton is part of the Zacks Transportation - Equipment and Leasing industry. Over the past month, Ryder (R - Free Report) , a stock from the same industry, has gained 5.1%. The company reported its results for the quarter ended March 2022 more than a month ago.

Ryder reported revenues of $2.85 billion in the last reported quarter, representing a year-over-year change of +28.5%. EPS of $3.59 for the same period compares with $1.09 a year ago.

Ryder is expected to post earnings of $3.74 per share for the current quarter, representing a year-over-year change of +55.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.8%.

Ryder has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.


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