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Trinity (TRN) Q4 Earnings Miss, Drop 89% Y/Y on Coronavirus Woes
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Trinity Industries’ (TRN - Free Report) fourth-quarter 2020 earnings (excluding $1.17 from non-recurring items) of 4 cents per share missed the Zacks Consensus Estimate by a penny. Moreover, the bottom line plunged 88.6% year over year due to coronavirus-induced decrease in railcar demand. Following this dismal earnings performance, shares of the company fell 4.6% at the close of business on Feb 24.
Total revenues of $415.6 million surpassed the Zacks Consensus Estimate of $299.7 million but declined 51.2% year over year. Lower deliveries in the Rail Products Group and fewer railcars sold hurt revenues in the quarter.
Segmental Results
The Railcar Leasing and Management Services Group generated revenues of $189.3 million, down 39.6% year over year. The downside was caused by lower fleet utilization and lower lease rates on renewals. Segmental operating profit dropped 12.1% to $88.2 million since no railcar sale took place during the quarter.
Revenues in the Rail Products Group (before eliminations) totaled $313.3 million, down 65.2% from the prior-year quarter’s number. Segmental operating profit was $0.1 million compared with $96.8 million a year ago. The decline in revenues and operating profit was caused by low railcar deliveries and lower pricing.
Revenues at the All Other Group (primarily includes results of highway products business) were $55.9 million, down 7.9% year over year due to decreased demand for highway products. Segmental operating profit came in at $4.3 million against operating loss of $0.6 million in the year-ago period. Lower costs drove operating profits at this segment.
In 2020, Trinity rewarded shareholders with $285 million through dividends and share repurchases.
The Zacks Rank #3 (Hold) company exited the fourth quarter with cash and cash equivalents of $132 million compared with $166.2 million at 2019-end. Meanwhile, debt totaled $5.02 billion as of Dec 31, 2020 compared with $4.88 billion at the end of 2019.
Trinity Industries, Inc. Price, Consensus and EPS Surprise
Trinity anticipates earnings to improve in 2021 from the year-ago period owing to its cost-saving initiatives. However, business environment is expected to remain challenging. Owing to strong cash flow synergies, the company estimates cash flow from operations in the range of $625 million-$675 million for 2021.
Sectorial Snapshot
Let’s take a look into some other Zacks Transportation sector companies’ fourth-quarter results.
Triton International Limited , sporting a Zacks Rank #1 (Strong Buy), reported fourth-quarter 2020 earnings of $1.70 per share, beating the Zacks Consensus Estimate of $1.42. However, total leasing revenues of $337.3 million missed the Zacks Consensus Estimate of $350.5 million. You can see the complete list of today’s Zacks #1 Rank stocks here.
Expeditors International of Washington, Inc. (EXPD - Free Report) , carrying a Zacks Rank #3 (Hold), reported fourth-quarter 2020 earnings of $1.16 per share, beating the Zacks Consensus Estimate of $1.04. Additionally, total revenues of $3,169.2 million outperformed the Zacks Consensus Estimate of $2,397 million.
Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) , reported fourth-quarter 2020 earnings (excluding 16 cents from non-recurring items) of 98 cents per share, missing the Zacks Consensus Estimate of $1.06. Total sales of $2,023.7 million also fell short of the Zacks Consensus Estimate of $2,106.5 million. The stock carries a Zacks Rank #4 (Sell).
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Trinity (TRN) Q4 Earnings Miss, Drop 89% Y/Y on Coronavirus Woes
Trinity Industries’ (TRN - Free Report) fourth-quarter 2020 earnings (excluding $1.17 from non-recurring items) of 4 cents per share missed the Zacks Consensus Estimate by a penny. Moreover, the bottom line plunged 88.6% year over year due to coronavirus-induced decrease in railcar demand. Following this dismal earnings performance, shares of the company fell 4.6% at the close of business on Feb 24.
Total revenues of $415.6 million surpassed the Zacks Consensus Estimate of $299.7 million but declined 51.2% year over year. Lower deliveries in the Rail Products Group and fewer railcars sold hurt revenues in the quarter.
Segmental Results
The Railcar Leasing and Management Services Group generated revenues of $189.3 million, down 39.6% year over year. The downside was caused by lower fleet utilization and lower lease rates on renewals. Segmental operating profit dropped 12.1% to $88.2 million since no railcar sale took place during the quarter.
Revenues in the Rail Products Group (before eliminations) totaled $313.3 million, down 65.2% from the prior-year quarter’s number. Segmental operating profit was $0.1 million compared with $96.8 million a year ago. The decline in revenues and operating profit was caused by low railcar deliveries and lower pricing.
Revenues at the All Other Group (primarily includes results of highway products business) were $55.9 million, down 7.9% year over year due to decreased demand for highway products. Segmental operating profit came in at $4.3 million against operating loss of $0.6 million in the year-ago period. Lower costs drove operating profits at this segment.
In 2020, Trinity rewarded shareholders with $285 million through dividends and share repurchases.
The Zacks Rank #3 (Hold) company exited the fourth quarter with cash and cash equivalents of $132 million compared with $166.2 million at 2019-end. Meanwhile, debt totaled $5.02 billion as of Dec 31, 2020 compared with $4.88 billion at the end of 2019.
Trinity Industries, Inc. Price, Consensus and EPS Surprise
Trinity Industries, Inc. price-consensus-eps-surprise-chart | Trinity Industries, Inc. Quote
Outlook
Trinity anticipates earnings to improve in 2021 from the year-ago period owing to its cost-saving initiatives. However, business environment is expected to remain challenging. Owing to strong cash flow synergies, the company estimates cash flow from operations in the range of $625 million-$675 million for 2021.
Sectorial Snapshot
Let’s take a look into some other Zacks Transportation sector companies’ fourth-quarter results.
Triton International Limited , sporting a Zacks Rank #1 (Strong Buy), reported fourth-quarter 2020 earnings of $1.70 per share, beating the Zacks Consensus Estimate of $1.42. However, total leasing revenues of $337.3 million missed the Zacks Consensus Estimate of $350.5 million. You can see the complete list of today’s Zacks #1 Rank stocks here.
Expeditors International of Washington, Inc. (EXPD - Free Report) , carrying a Zacks Rank #3 (Hold), reported fourth-quarter 2020 earnings of $1.16 per share, beating the Zacks Consensus Estimate of $1.04. Additionally, total revenues of $3,169.2 million outperformed the Zacks Consensus Estimate of $2,397 million.
Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) , reported fourth-quarter 2020 earnings (excluding 16 cents from non-recurring items) of 98 cents per share, missing the Zacks Consensus Estimate of $1.06. Total sales of $2,023.7 million also fell short of the Zacks Consensus Estimate of $2,106.5 million. The stock carries a Zacks Rank #4 (Sell).
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>