- Trinity Industries Inc TRN shares are plunging Tuesday as its bottom-line performance lagged estimates. The company's margins in the Rail Products group continued to reflect headwinds.
- TRN reported first-quarter FY23 revenue growth of 35.8% year-over-year to $641.7 million, beating the consensus of $601.05 million.
- Adjusted EPS improved to $0.07 from $0.03 in 1Q22, largely missing the consensus of $0.25.
- Adjusted operating profit increased 39.3% Y/Y to $67.4 million, and the margin expanded by 26 bps to 10.5%.
- Adjusted EBITDA increased 21.3% Y/Y to $142.1 million, and the margin fell by 265 bps to 22.1%.
- Trinity Industries' net cash provided by operating activities – continuing operations was $102.5 million, compared to $28.5 million in 1Q22, and adjusted free cash flow stood at $36.2 million.
- Trinity Industries had liquidity of $452 million as of March 31, 2023. It held cash and equivalents of $81.9 million.
- Lease fleet utilization of 98.2% and Future Lease Rate Differential of positive 44.3% at quarter end.
- New railcar orders were 2,690 vs. 5,055 in 1Q22 and railcar deliveries were 4,045 (+63.8% Y/Y). The backlog stood at $3.7 billion at quarter-end.
- "In our Railcar Leasing and Management Services Group, lease rates and utilization improved again. The Future Lease Rate Differential improved sequentially to 44.3% giving us optimism about lease rates continuing to increase this year. Additionally, our lease fleet utilization of 98.2% shows customer demand remains robust, further supporting strength in this market," commented Chief Executive Officer and President Jean Savage.
- FY23 Outlook reaffirmed: Trinity Industries expects EPS of $1.50-$1.70, versus the consensus of $1.64.
- It expects Industry deliveries of 40,000 - 45,000 railcars, a net investment in the lease fleet of $250 million - $350 million.
- Price Action: TRN shares are trading lower by 13.2% at $20.67 on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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