Dahlman Rose Gives Color On Textainer Group Holdings Following Earnings Release

During 1Q11 Textainer TGH invested $426.7 million in new containers to be delivered in the first half of 2011. Given Textainer's investment in 2010 and 1Q11, Dahlman updated its 2011 EPS estimates. Dahlman forecasts 2011 EPS of $3.16, up from our prior estimate of $3.09 and compared to the consensus estimate of $3.07. For 2012, Dahlman forecasts EPS of $3.40, up from its prior estimate of $3.37 and compared to the consensus estimate of $3.33. Dahlman's 2011 and 2012 EPS estimates assume utilization declines to 95% and 94% from the current 99%. Textainer announced it will increase the dividend to $0.31/per share from $0.29/per share. The 6.9% increase in dividend does not come as a surprise and it would not be shocked to see further increases this year. Dahlman estimates Textainer will pay a dividend of $1.22/per share or a yield of 3.7%. The current dividend policy represents 43% of net income, slightly under Textainer's historical average of 46%. Textainer announced it will increase the dividend to $0.31/per share from $0.29/per share. The 6.9% increase in dividend does not come as a surprise and Dahlman would not be shocked to see further increases this year. It estimates Textainer will pay a dividend of $1.22/per share or a yield of 3.7%. The current dividend policy represents 43% of net income, slightly under Textainer's historical average of 46%. Dahlman Rose has a Buy rating on TGH TGH is trading higher at $33.56