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Trinity (TRN) Shares Rise 3.4% Despite Q2 Earnings Miss
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Trinity Industries, Inc. (TRN - Free Report) shares gained 3.4% since its second-quarter 2023 earnings release on Aug 1. TRN’s second-quarter earnings per share (EPS) of 23 cents missed the Zacks Consensus Estimate of 33 cents but improved 64.3% year over year on the back of improved operating results, partially offset by higher interest expense.
Total revenues of $722.4 million outpaced the Zacks Consensus Estimate of $613.9 million and grew 73.3% year over year. The top line was aided by a higher volume of external deliveries in the Rail Products Group.
Trinity Industries, Inc. Price, Consensus and EPS Surprise
The Railcar Leasing and Management Services Group generated revenues of $223.2 million, up 14.3% year over year. Segmental revenues were boosted by higher utilization and improved lease rates.
Revenues in the Rail Products Group (before eliminations) totaled $709 million, up 64.6% year over year. The uptick was backed by higher delivery volumes, partially offset by the mix of railcars sold. Segmental operating profit was $23.7 million compared with $13.7 million in the year-ago period. The operating profit margin grew to 3.3% from 3.2% in the year-ago reported quarter.
Trinity exited the second quarter with cash and cash equivalents of $91.7 million compared with $81.9 million as of Mar 31, 2023. Debt totaled $5,832.6 million as of Jun 30, 2023, compared with $5,707.6 million at the prior-quarter end.
During the reported quarter, TRN generated $37.8 million of net cash from operating activities. Adjusted free cash flow (after investments and dividends) was $44.6 million.
Trinity rewarded its shareholders with $22.2 million in the second quarter.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) second-quarter 2023 EPS of $1.81 missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year.
JBHT’s total operating revenues of $3,132.6 million also lagged the Zacks Consensus Estimate of $3,347.5 million and fell 18.4% year over year. The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal, 21% in Truckload and a 4% decline in productivity in Dedicated Capacity Solutions on the back of changes in customer rate, freight mix and lower fuel surcharge revenue.
Total operating revenues, excluding fuel surcharges, decreased 14% year over year.
Delta Air Lines (DAL - Free Report) reported better-than-expected revenues and EPS, driven by strong air-travel demand. DAL’s second-quarter 2023 EPS (excluding 16 cents from non-recurring items) of $2.68 comfortably beat the Zacks Consensus Estimate of $2.42. DAL reported EPS of $1.44 a year ago, dull compared to the current scenario, as air-travel demand was not so buoyant then.
DAL’s total revenues of $15,578 million beat the Zacks Consensus Estimate of $14,991.6 million. Total revenues increased 12.69% on a year-over-year basis, driven by higher air-travel demand.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2023 EPS of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year.
Operating revenues of $14,178 million beat the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues increased 17.1% year over year due to upbeat air-travel demand. The year-over-year increase in the top line was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.
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Trinity (TRN) Shares Rise 3.4% Despite Q2 Earnings Miss
Trinity Industries, Inc. (TRN - Free Report) shares gained 3.4% since its second-quarter 2023 earnings release on Aug 1. TRN’s second-quarter earnings per share (EPS) of 23 cents missed the Zacks Consensus Estimate of 33 cents but improved 64.3% year over year on the back of improved operating results, partially offset by higher interest expense.
Total revenues of $722.4 million outpaced the Zacks Consensus Estimate of $613.9 million and grew 73.3% year over year. The top line was aided by a higher volume of external deliveries in the Rail Products Group.
Trinity Industries, Inc. Price, Consensus and EPS Surprise
Trinity Industries, Inc. price-consensus-eps-surprise-chart | Trinity Industries, Inc. Quote
The Railcar Leasing and Management Services Group generated revenues of $223.2 million, up 14.3% year over year. Segmental revenues were boosted by higher utilization and improved lease rates.
Revenues in the Rail Products Group (before eliminations) totaled $709 million, up 64.6% year over year. The uptick was backed by higher delivery volumes, partially offset by the mix of railcars sold. Segmental operating profit was $23.7 million compared with $13.7 million in the year-ago period. The operating profit margin grew to 3.3% from 3.2% in the year-ago reported quarter.
Trinity exited the second quarter with cash and cash equivalents of $91.7 million compared with $81.9 million as of Mar 31, 2023. Debt totaled $5,832.6 million as of Jun 30, 2023, compared with $5,707.6 million at the prior-quarter end.
During the reported quarter, TRN generated $37.8 million of net cash from operating activities. Adjusted free cash flow (after investments and dividends) was $44.6 million.
Trinity rewarded its shareholders with $22.2 million in the second quarter.
Trinity carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) second-quarter 2023 EPS of $1.81 missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year.
JBHT’s total operating revenues of $3,132.6 million also lagged the Zacks Consensus Estimate of $3,347.5 million and fell 18.4% year over year. The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal, 21% in Truckload and a 4% decline in productivity in Dedicated Capacity Solutions on the back of changes in customer rate, freight mix and lower fuel surcharge revenue.
Total operating revenues, excluding fuel surcharges, decreased 14% year over year.
Delta Air Lines (DAL - Free Report) reported better-than-expected revenues and EPS, driven by strong air-travel demand. DAL’s second-quarter 2023 EPS (excluding 16 cents from non-recurring items) of $2.68 comfortably beat the Zacks Consensus Estimate of $2.42. DAL reported EPS of $1.44 a year ago, dull compared to the current scenario, as air-travel demand was not so buoyant then.
DAL’s total revenues of $15,578 million beat the Zacks Consensus Estimate of $14,991.6 million. Total revenues increased 12.69% on a year-over-year basis, driven by higher air-travel demand.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2023 EPS of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year.
Operating revenues of $14,178 million beat the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues increased 17.1% year over year due to upbeat air-travel demand. The year-over-year increase in the top line was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.