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Triton's (TRTN) Q2 Earnings Miss Estimates, Decline Y/Y

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Triton International Limited’s second-quarter 2020 earnings of 86 cents per share missed the Zacks Consensus Estimate of 89 cents. The bottom line also declined 25.2% year over year. Results were hurt by low volumes of container transport and COVID-19 led widespread economic shutdowns leading to significant slowdown in global trade. Further, quarterly revenues of $321.4 million declined 5.1% year over year due to 4.5% fall in revenues from operating leases.

Equipment trading revenues of $16.9 million plunged 27.2% from the year-ago quarter’s reported figure. Trading margin came in at $2 million compared with $4.5 million in the prior-year quarter.

The company generated a return on equity of 12.2% in the reported quarter compared with 16.2% in the year-ago quarter. Total operating expenses increased to $183.7 million.

Liquidity

This Zacks Rank #3 (Hold) company exited the second quarter with average utilization of 95%, down 40 basis points sequentially. You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

The company repurchased 2.1 million common shares during the second quarter. Also, it repurchased an additional 0.3 million common shares through Jul 22 under the share repurchase update. Triton's Board of Directors announced a quarterly cash dividend of 52 cents per share, payable on Sep 24, to its shareholders of record as of Sep 10.

Q3 Outlook

The company’s third-quarter 2020 performance is likely to be affected by weak economic and trade activity, thanks to the global economic slowdown stemming from the COVID-19 pandemic. However, with easing shutdowns in Europe and in the United States leasing activity have improved in July. Triton also expects its adjusted net income per share will increase from second quarter to the third quarter of 2020.

Sectorial Snapshot

Apart from Triton, let’s take a look into some other Zacks Transportation sector’s second-quarter earnings.

Canadian National (CNI - Free Report) second-quarter 2020 earnings (excluding 36 cents from non-recurring items) of 92 cents per share (C$0.77) were in line with the Zacks Consensus Estimate. However, the bottom line declined 28.7% year over year. Quarterly revenues of $2,315 million (C$3,209 million) missed the Zacks Consensus Estimate of $2,407.6 million and declined 21.8% year over year.

J.B. Hunt Transport (JBHT - Free Report) , carrying a Zacks Rank #3 (Hold), reported second-quarter earnings of $1.14 per share that surpassed the Zacks Consensus Estimate by 31 cents. Total revenues of $2,145.6 million beat the Zacks Consensus Estimate of $2,060.9 million.

Kansas City Southern’s second-quarter earnings (excluding a penny from non-recurring items) of $1.15 per share beat the Zacks Consensus Estimate of $1.12. This Zacks Rank #3 (Hold) company’s total revenues of $547.9 million lagged the Zacks Consensus Estimate of $550.2 million.

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