Railcar products and services provider Trinity Industries (NYSE:TRN) will be reporting results tomorrow before market hours. Here’s what you need to know.
Trinity beat analysts’ revenue expectations by 14% last quarter, reporting revenues of $841.4 million, up 16.5% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ earnings and EBITDA estimates.
Is Trinity a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Trinity’s revenue to decline 15.3% year on year to $696 million, a reversal from the 65.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Trinity has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Trinity’s peers in the heavy transportation equipment segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Allison Transmission delivered year-on-year revenue growth of 12%, beating analysts’ expectations by 4.3%, and PACCAR reported a revenue decline of 6.4%, topping estimates by 1.4%. PACCAR traded down 5.3% following the results.
Read our full analysis of Allison Transmission’s results here and PACCAR’s results here.
Investors in the heavy transportation equipment segment have had steady hands going into earnings, with share prices flat over the last month. Trinity is up 4.9% during the same time and is heading into earnings with an average analyst price target of $35 (compared to the current share price of $35.64).
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