Railcar products and services provider Trinity (NYSE:TRN) will be reporting earnings tomorrow morning. Here’s what to expect.
Trinity beat analysts’ revenue expectations by 9.2% last quarter, reporting revenues of $798.8 million, down 2.7% year on year. It was a slower quarter for the company, with a miss of analysts’ backlog and EPS 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 8.9% year on year to $726.6 million, a reversal from the 35% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.35 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 twice over the last two years.
Looking at Trinity’s peers in the heavy transportation equipment segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Cummins’s revenues decreased 1.1% year on year, beating analysts’ expectations by 4.7%, and Oshkosh reported revenues up 6.3%, topping estimates by 8.6%. Cummins traded up 6.2% following the results while Oshkosh was also up 21.6%.
Read our full analysis of Cummins’s results here and Oshkosh’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the heavy transportation equipment stocks have shown solid performance, the group has generally underpeformed, with share prices down 4.1% on average over the last month. Trinity is down 10% during the same time and is heading into earnings with an average analyst price target of $36 (compared to the current share price of $34.21).
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