Thursday, October 31, 2013

Trinity Industries record 3Q earnings beat Street

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Trinity Industries, Inc. reported record third-quarter earnings after the closing bell on Wall Street Wednesday, Oct. 30, 2013, surpassing Wall Street consensus analyst estimates.

Trinity said its earnings rose 58% from the third quarter of 2012 to $99.6 million, or $1.26 per share, from $63.2 million, or 80 cents a share, a year ago. Per share earnings also cleanly topped Wall Street estimates of $1.17 per share.

Revenue of $1.11 billion fell just short of Street expectations of $1.15 billion, but still was up 22% from $907.3 million in the third quarter of 2012. During the quarter, Trinity took orders for 5,610 railcars, and delivered 6,225.

"TRN raised 2013 guidance to an adjusted $4.47-$4.57 from an adjusted $4.12-$4.32 (we note TRN has beat and raised guidance during each quarter in FY13), which implies 4Q13 EPS of $1.24-$1.34 vs. consensus of $1.18," said KeyBanc Capital Markets Inc. analyst Steve Barger Wednesday in a note to clients. "Looking forward, we think the combination of strong production visibility, what should be attractive margins in backlog and a 2H13 annualized EPS run-rate of more than $5 per share should lead to upside to the FY14 consensus estimate of $4.79."

Said Trinity Chairman, CEO, and President Timothy R. Wallace in a statement, "This is a tremendous accomplishment, and I am very proud of the hard work and talent of our people over the last several years to align our manufacturing capacity with the strong demand for our products that serve the oil, gas, and chemical industries."