The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Trinity Industries missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins were steady, net margins expanded.
Trinity Industries reported revenue of $937.5 million. The 10 analysts polled by S&P Capital IQ wanted to see revenue of $996.1 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $796.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.73. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.79 per share. GAAP EPS of $0.80 for Q3 were 100% higher than the prior-year quarter's $0.40 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 19.4%, 50 basis points worse than the prior-year quarter. Operating margin was 13.2%, about the same as the prior-year quarter. Net margin was 6.7%, 270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $984.6 million. On the bottom line, the average EPS estimate is $0.80.
Next year's average estimate for revenue is $3.93 billion. The average EPS estimate is $3.08.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,018 members out of 1,049 rating the stock outperform, and 31 members rating it underperform. Among 233 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 232 give Trinity Industries a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Trinity Industries is outperform, with an average price target of $34.33.
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