The 10-second takeaway
For the quarter ended March 31 (Q1), Trinity Industries met expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved significantly.
Gross margin contracted, operating margin contracted, and net margin grew.
Trinity Industries notched revenue of $925.3 million. The five analysts polled by S&P Capital IQ expected to see revenue of $920.3 million on the same basis. GAAP reported sales were 44% higher than the prior-year quarter's $644.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.61. The eight earnings estimates compiled by S&P Capital IQ averaged $0.50 per share on the same basis. GAAP EPS of $0.66 for Q1 were 120% higher than the prior-year quarter's $0.30 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 18.2%, 290 basis points worse than the prior-year quarter. Operating margin was 12.4%, 90 basis points worse than the prior-year quarter. Net margin was 5.7%, 190 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $961.4 million. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $3.85 billion. The average EPS estimate is $2.50.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,016 members out of 1,049 rating the stock outperform, and 33 members rating it underperform. Among 251 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 249 give Trinity Industries a green thumbs-up, and two 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 $39.83.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.