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What's in the Offing for Trinity (TRN) This Earnings Season?

Zacks Equity Research
·4 min read

Trinity Industries TRN is scheduled to report fourth-quarter 2022 results on Feb 21, before market open.

Trinity has not performed well on the earnings front, underperforming the Zacks Consensus Estimate in two of the previous four quarters, beating the same once and matching it once. The average earnings surprise was negative 24.7%. The Zacks Consensus Estimate for fourth-quarter earnings is currently pegged at 43 cents, implying an increase of 437% from the year-ago reported figure. The consensus estimate has remained unchanged in the past 30 days.

Trinity Industries, Inc. Price and EPS Surprise

Trinity Industries, Inc. Price and EPS Surprise
Trinity Industries, Inc. Price and EPS Surprise

Trinity Industries, Inc. price-eps-surprise | Trinity Industries, Inc. Quote

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The company is expected to have benefited from steady equipment and lease demand. The Zacks Consensus Estimate for the top line is pegged at $881.9 million, which implies 86.8% year-over-year growth. Such improved revenue projections can be correlated with higher fleet utilization and higher lease revenues. The company is expected to have been positively impacted by upbeat railcar demand and favorable renewal rates.

However, headwinds like labor shortages, supply-chain issues and higher costs might have hurt its performance in the to-be-reported quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for TRN this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they're reported with our Earnings ESP Filter.

Trinity has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).

Highlights of Q3

Trinity Industries reported mixed third-quarter 2022 results wherein earnings outpaced the Zacks Consensus Estimate but revenues missed the same. Quarterly earnings of 34 cents per share outpaced the Zacks Consensus Estimate of 31 cents and improved year over year. The bottom line was backed by improved operating results. Total revenues of $496.6 million fell short of the Zacks Consensus Estimate of $708 million and declined 1.4% year over year.

Q4 Performances of Some Transportation Companies

Here are some stocks from the broader Zacks Transportation that beat the Zacks Consensus Estimate in their fourth-quarter earnings.

United Airlines UAL, currently carrying a  Zacks Rank of 2, reported fourth-quarter 2022 earnings of $2.46 per share, which beat the Zacks Consensus Estimate of $2.07. In the year-ago quarter, UAL incurred a loss of $1.60 per share when air-travel demand was not as buoyant as in the current scenario. The fourth quarter of 2022 was the third consecutive profitable quarter at UAL since the onset of the pandemic.

Operating revenues of $12,400 million beat the Zacks Consensus Estimate of $12,230 million and increased 51.37% year over year owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.9% from fourth-quarter 2019 (pre-COVID-19) levels.You can see the complete list of today's Zacks #1 Rank stocks here.

Delta Air Lines DAL, currently carrying a Zacks Rank of 3, reported fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share, beating the Zacks Consensus Estimate of $1.29. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.

DAL reported revenues of $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased by more than 41.87% on a year-over-year basis.

CSX Corporation’s CSX fourth-quarter earnings of 49 cents per share beat the Zacks Consensus Estimate of 47 cents and improved 16.67% year over year.

Total revenues of $3,730 million surpassed the Zacks Consensus Estimate of $3,722.1 million. The top line increased 8.84% year over year on the back of higher fuel surcharge, pricing gains, increase in volumes along with an increase in storage and other revenues. Overall revenues per unit increased 11%.

Currently, CSX carries a Zacks Rank of 3.

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