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.
Over the decades, small-cap stocks like Trinity Industries have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Trinity Industries to My Watchlist.
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.
More from The Motley Fool
Here's Why Trinity Industries Inc's Stock Is Surging Today
The diversified industrial products manufacturer won a reversal of a fraud judgment.
Trinity Industries Inc. Stock Jumps on Activist Stake
ValueAct Captial takes a 6.8% in the railcar and wind tower maker.
Greenbrier Falls Short as Railcar Deliveries Plunge
The railcar manufacturer couldn't give investors the earnings and revenue growth they wanted.