Trinity Industries TRN is gearing up to announce its fourth-quarter 2023 results on Feb 22, before the market opens.
Trinity has had an underwhelming track record when it comes to earnings surprises. It missed the Zacks Consensus Estimate in three of the last four quarters, with an average negative surprise of 32.95%. The Zacks Consensus Estimate for fourth-quarter earnings currently stands at 66 cents per share, signaling a 4.35% decline in the past 60 days.
Quarterly Expectations
TRN is expected to have gained from a surge in the demand for equipment and lease. The Zacks Consensus Estimate for revenues is projected to be $779.28 million, representing a 31.81% increase from the actuals of the fourth quarter of 2022. The rise in fleet utilization and lease revenues is believed to have supported the top line, while the growth in railcar demand and renewable rates is anticipated to have contributed to TRN’s performance. However, challenges such as labor shortages, supply-chain disruptions, and increased costs might have put a dent in its performance for the fourth quarter of 2023.
Prognostication
According to our proven model, the likelihood of TRN beating earnings this time around is inconclusive. A positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) usually augur an earnings beat. However, this is not anticipated this time. Trinity has an Earnings ESP of 0.00% (Most Accurate Estimate aligns with the Zacks Consensus Estimate of 66 cents) and a Zacks Rank #2.
Highlights of the Previous Quarter
Trinity’s earnings fell short of the Zacks Consensus Estimate, but its revenues exceeded expectations. Total revenues of $821.3 million surpassed the Zacks Consensus Estimate of $652.4 million and surged 63.5% year over year.
Q4 Performance of Peer Transportation Companies
In this reporting cycle, several companies in the broader Zacks Transportation sector surpassed earnings expectations. For instance, CSX and Delta Air Lines (DAL) both reported earnings that exceeded the Zacks Consensus Estimate.
In the fourth quarter of 2023, CSX reported earnings of 45 cents per share, beating the Zacks Consensus Estimate of 44 cents. Meanwhile, Delta Air Lines (DAL) achieved earnings of $1.28 per share, surpassing the Zacks Consensus Estimate of $1.17.
Stay tuned for the forthcoming earnings announcements with the Zacks Earnings Calendar
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