It has been about a month since the last earnings report for Triton International . Shares have lost about 8.3% in that time frame, underperforming 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 catalysts.
Earnings Beat at Triton in Q4
Triton's fourth-quarter 2022 earnings of $2.76 per share surpassed the Zacks Consensus Estimate of $2.70 and jumped 3.4% year over year.
Total leasing revenues of $416.31 million missed the Zacks Consensus Estimate of $422.5 million and decreased 0.2% year over year. Revenues from operating leases (accounting for 93% of the top line) fell 1.7% year over year.
Equipment trading revenues of $20.86 million fell 47.1% from the year-ago quarter’s figure. The trading margin came in at $1.78 million compared with $6.06 million in the prior-year quarter.
Triton generated a return on equity (adjusted) of 25.4% in the reported quarter compared with 30.7% in the year-ago quarter. Total operating expenses decreased 0.6% year over year to $193.89 million.
Triton exited the fourth quarter with average utilization of 98.4% compared with 99.1% in the third quarter.
Triton repurchased 2.8 million shares during the fourth quarter of 2022 and has repurchased an additional 0.6 million shares through Feb 8, 2023.
TRTN’s board of directors has declared a quarterly cash dividend of 70 cents per share. The dividend will be paid on Mar 24, 2023, to shareholders of record at the close of business on Mar 10, 2023.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -12.75% due to these changes.
VGM Scores
At this time, Triton has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile 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
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Triton has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Image: Bigstock
Why Is Triton (TRTN) Down 8.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Triton International . Shares have lost about 8.3% in that time frame, underperforming 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 catalysts.
Earnings Beat at Triton in Q4
Triton's fourth-quarter 2022 earnings of $2.76 per share surpassed the Zacks Consensus Estimate of $2.70 and jumped 3.4% year over year.
Total leasing revenues of $416.31 million missed the Zacks Consensus Estimate of $422.5 million and decreased 0.2% year over year. Revenues from operating leases (accounting for 93% of the top line) fell 1.7% year over year.
Equipment trading revenues of $20.86 million fell 47.1% from the year-ago quarter’s figure. The trading margin came in at $1.78 million compared with $6.06 million in the prior-year quarter.
Triton generated a return on equity (adjusted) of 25.4% in the reported quarter compared with 30.7% in the year-ago quarter. Total operating expenses decreased 0.6% year over year to $193.89 million.
Triton exited the fourth quarter with average utilization of 98.4% compared with 99.1% in the third quarter.
Triton repurchased 2.8 million shares during the fourth quarter of 2022 and has repurchased an additional 0.6 million shares through Feb 8, 2023.
TRTN’s board of directors has declared a quarterly cash dividend of 70 cents per share. The dividend will be paid on Mar 24, 2023, to shareholders of record at the close of business on Mar 10, 2023.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -12.75% due to these changes.
VGM Scores
At this time, Triton has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile 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
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Triton has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.