Trinity Industries, Inc. (TRN) is navigating the turbulent waters of labor shortages and supply-chain disruptions. However, amidst this chaos, the company remains steadfast in its commitment to reward shareholders and strengthen its position in the market.
Trinity’s decision to hike its quarterly cash dividend by almost 8% is a testament to its dedication to shareholders. This mindful initiative ensures that the company is utilizing its resources effectively to enhance shareholder returns.
In the first nine months of 2023, TRN dispersed $64.7 million in dividend payments, showcasing its unwavering loyalty to investors. Rewarding shareholders translates into boosted investor confidence and a positive impact on the company’s bottom line.
Despite the challenges, Trinity’s stock performance has been impressive, with a stellar gain of 19.7% over the last six months, overshadowing industry averages.
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The Rail Products Group has been a stronghold for Trinity, witnessing a 14.2% increase in segmental revenues in the third quarter. Higher delivery volumes and favorable railcar sales have been key contributors to this success.
On the other hand, the company has been battling labor and supply-chain challenges, which has impacted deliveries and margins at the Rail Products Group. As a result, Trinity revised its 2023 earnings per share outlook to a range of $1.2-$1.35, down from the previous forecast of $1.35-$1.45 per share.
Zacks Rank and Stocks to Consider
Trinity currently holds a Zacks Rank #3 (Hold).
For investors in the transportation sector, Wabtec Corporation (WAB) and SkyWest, Inc. (SKYW) are intriguing options. WAB has an enticing expected earnings growth rate of 22.02% for the current year, while SKYW’s fleet-modernization efforts have positioned it for significant gains.
SkyWest’s improved year-to-date performance of 202.1% and a trailing four-quarter earnings surprise of 32.57% are quite remarkable, indicating its potential for further growth.
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