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Trinity (TRN) Soars 13.57% in Wednesday's Trading: Here's Why
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Shares of Trinity Industries, Inc. (TRN - Free Report) surged 13.57% on May 1, closing the trading session at $29.55. The upside was owing to the better-than-expected first-quarter 2024 earnings performance and bullish full-year 2024 earnings guidance.
Notably, quarterly earnings of 33 cents per share outpaced the Zacks Consensus Estimate of 26 cents and improved more than 100% year over year.
Trinity’s first-quarter 2024 performance reflected strength across both its segments — Railcar Leasing and Management Services Group and Rail Products Group. Anticipating both its segments to continue performing well, management raised the earnings per share guidance for 2024 to the range of $1.35 to $1.55 (which excludes items outside of the company’s core business operations) from $1.30 to $1.50 guided previously. The raised earnings guidance raises optimism about the stock.
Trinity Industries, Inc. Price, Consensus and EPS Surprise
Total revenues of $809.6 million grew 26.2% year over year. The top line benefited from higher external deliveries in the Rail Products Group, improved lease rates and a higher volume of external repairs in the Leasing Group.
Operating profit of $115.2 million grew 66.9% year over year. The uptick was backed by higher external deliveries in the Rail Products Group, improved lease rates and a higher volume of external repairs in the Leasing Group, which was partially offset by lower lease portfolio sales volume.
The Railcar Leasing and Management Services Group generated revenues of $285.2 million, up 22.4% year over year. Segmental revenues were boosted by a higher volume of repairs completed for third parties, improved lease rates, and net additions to the lease fleet. Segmental operating profit was $100.3 million, up 18.5%, owing to improved lease rates and a higher volume of external repairs, partially offset by lower lease portfolio sales volume.
Revenues in the Rail Products Group totaled $667.4 million, up 13.5% year over year on the back of higher deliveries. Segmental operating profit was $43.8 million compared with $24.1 million in the year-ago period. The uptick was due to higher deliveries and improved operational and labor efficiencies. The operating profit margin grew to 6.6% from 4.1% in the year-ago reported quarter.
Trinity exited the first quarter with cash and cash equivalents of $118.8 million compared with $105.7 million at the fourth-quarter end. Debt totaled $5,867 million as of Mar 31, 2024, compared with $5,754.2 million at the end of the prior quarter.
During first-quarter 2024, TRN generated $56.5 million of net cash from operating activities. Adjusted free cash flow was $11.7 million. Trinity rewarded its shareholders with $23 million in the reported quarter.
Delta Air Lines (DAL - Free Report) reported first-quarter 2024 earnings (excluding 39 cents from non-recurring items) of 45 cents per share, which comfortably beat the Zacks Consensus Estimate of 36 cents. Earnings increased 80% on a year-over-year basis.
Revenues of $13.75 billion surpassed the Zacks Consensus Estimate of $12.84 billion and increased 7.75% on a year-over-year basis, driven by strong air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $12.56 billion, up 6% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported first-quarter 2024 loss per share (excluding 23 cents from non-recurring items) of 15 cents, which was narrower than the Zacks Consensus Estimate of a loss of 53 cents. In the year-ago reported quarter, UAL reported a loss of 63 cents per share.
Operating revenues of $12,539 million beat the Zacks Consensus Estimate of $12,428.4 million. The top line increased 9.7% year over year due to upbeat air-travel demand. This was driven by a 10.1% rise in passenger revenues (accounting for 90.2% of the top line) to $11,313 million. Almost 39,325 passengers traveled on UAL flights in the first quarter, up 6.8% year over year.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2024 earnings of $1.22 per share missed the Zacks Consensus Estimate of $1.53 and declined 35.5% year over year.
JBHT’s total operating revenues of $2,944 million missed the Zacks Consensus Estimate of $3,117.1 million and fell 8.8% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 7% year over year. The downfall was owing to a 9% decrease in segment gross revenue per load in both Intermodal (JBI) and Truckload (JBT), 22% fewer loads in Integrated Capacity Solution (ICS), and a modest decline in average trucks and productivity in Dedicated Contract Services (DCS). Revenue declines in JBI, ICS, JBT and DCS were partially offset by Final Mile Services (FMS) revenue growth of 2%, primarily driven by new contracts implemented over the past year.
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Trinity (TRN) Soars 13.57% in Wednesday's Trading: Here's Why
Shares of Trinity Industries, Inc. (TRN - Free Report) surged 13.57% on May 1, closing the trading session at $29.55. The upside was owing to the better-than-expected first-quarter 2024 earnings performance and bullish full-year 2024 earnings guidance.
Notably, quarterly earnings of 33 cents per share outpaced the Zacks Consensus Estimate of 26 cents and improved more than 100% year over year.
Trinity’s first-quarter 2024 performance reflected strength across both its segments — Railcar Leasing and Management Services Group and Rail Products Group. Anticipating both its segments to continue performing well, management raised the earnings per share guidance for 2024 to the range of $1.35 to $1.55 (which excludes items outside of the company’s core business operations) from $1.30 to $1.50 guided previously. The raised earnings guidance raises optimism about the stock.
Trinity Industries, Inc. Price, Consensus and EPS Surprise
Trinity Industries, Inc. price-consensus-eps-surprise-chart | Trinity Industries, Inc. Quote
Other Aspects of the Q1 Earnings Report
Total revenues of $809.6 million grew 26.2% year over year. The top line benefited from higher external deliveries in the Rail Products Group, improved lease rates and a higher volume of external repairs in the Leasing Group.
Operating profit of $115.2 million grew 66.9% year over year. The uptick was backed by higher external deliveries in the Rail Products Group, improved lease rates and a higher volume of external repairs in the Leasing Group, which was partially offset by lower lease portfolio sales volume.
The Railcar Leasing and Management Services Group generated revenues of $285.2 million, up 22.4% year over year. Segmental revenues were boosted by a higher volume of repairs completed for third parties, improved lease rates, and net additions to the lease fleet. Segmental operating profit was $100.3 million, up 18.5%, owing to improved lease rates and a higher volume of external repairs, partially offset by lower lease portfolio sales volume.
Revenues in the Rail Products Group totaled $667.4 million, up 13.5% year over year on the back of higher deliveries. Segmental operating profit was $43.8 million compared with $24.1 million in the year-ago period. The uptick was due to higher deliveries and improved operational and labor efficiencies. The operating profit margin grew to 6.6% from 4.1% in the year-ago reported quarter.
Trinity exited the first quarter with cash and cash equivalents of $118.8 million compared with $105.7 million at the fourth-quarter end. Debt totaled $5,867 million as of Mar 31, 2024, compared with $5,754.2 million at the end of the prior quarter.
During first-quarter 2024, TRN generated $56.5 million of net cash from operating activities. Adjusted free cash flow was $11.7 million. Trinity rewarded its shareholders with $23 million in the reported quarter.
Currently, 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
Delta Air Lines (DAL - Free Report) reported first-quarter 2024 earnings (excluding 39 cents from non-recurring items) of 45 cents per share, which comfortably beat the Zacks Consensus Estimate of 36 cents. Earnings increased 80% on a year-over-year basis.
Revenues of $13.75 billion surpassed the Zacks Consensus Estimate of $12.84 billion and increased 7.75% on a year-over-year basis, driven by strong air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $12.56 billion, up 6% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported first-quarter 2024 loss per share (excluding 23 cents from non-recurring items) of 15 cents, which was narrower than the Zacks Consensus Estimate of a loss of 53 cents. In the year-ago reported quarter, UAL reported a loss of 63 cents per share.
Operating revenues of $12,539 million beat the Zacks Consensus Estimate of $12,428.4 million. The top line increased 9.7% year over year due to upbeat air-travel demand. This was driven by a 10.1% rise in passenger revenues (accounting for 90.2% of the top line) to $11,313 million. Almost 39,325 passengers traveled on UAL flights in the first quarter, up 6.8% year over year.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2024 earnings of $1.22 per share missed the Zacks Consensus Estimate of $1.53 and declined 35.5% year over year.
JBHT’s total operating revenues of $2,944 million missed the Zacks Consensus Estimate of $3,117.1 million and fell 8.8% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 7% year over year. The downfall was owing to a 9% decrease in segment gross revenue per load in both Intermodal (JBI) and Truckload (JBT), 22% fewer loads in Integrated Capacity Solution (ICS), and a modest decline in average trucks and productivity in Dedicated Contract Services (DCS). Revenue declines in JBI, ICS, JBT and DCS were partially offset by Final Mile Services (FMS) revenue growth of 2%, primarily driven by new contracts implemented over the past year.