Trinity Industries (TRN) Tops Q2 EPS by 11c, Miss on Revenues; Boosts FY18 EPS Outlook

Trinity Industries (NYSE: TRN) reported Q2 EPS of $0.48, $0.11 better than the analyst estimate of $0.37. Revenue for the quarter came in at $942.3 million versus the consensus estimate of $983.67 million.

“Trinity’s consolidated second quarter financial results exceeded our expectations due to better operational performance,” said Timothy R. Wallace, Trinity’s Chairman, CEO and President. “Overall market fundamentals continue to improve. The level of orders received by our railcar and inland barge manufacturing businesses during the second quarter reflects growing momentum in respect to demand for our products.”

Mr. Wallace added, “We remain on track for the planned spin-off of Trinity’s infrastructure-related businesses to our shareholders in the fourth quarter. Both Trinity and Arcosa are expected to launch with very solid foundations.”

• Earnings per common diluted share improved to $0.43 compared with $0.33 in 2017
• Adjusted earnings per common diluted share of $0.48, excluding $10.4 million, or $0.05 per share, of transaction costs incurred related to the planned spin-off of Arcosa, Inc. to Trinity stockholders
• Lower effective tax rate of 23.9% compared with 40.9% in 2017 due primarily to the Tax Cut and Jobs Act, increasing earnings per common diluted share by $0.10 year-over-year
• Railcar deliveries and orders totaling 5,105 and 8,320 railcars, respectively, in the Rail Group, compared with 4,055 and 5,705 railcars, respectively, in 2017
• Orders with a value of $116.8 million in the Inland Barge Group
• Full year 2018 earnings per common diluted share guidance increased to between $1.15 and $1.40, compared with previous earnings guidance of between $0.95 and $1.20 per share
• Full year 2018 adjusted earnings, excluding spin-off related transaction costs of approximately $30 to $40 million, increased to between $1.45 and $1.65 per common diluted share compared with previous earnings guidance, excluding spin-off related transaction costs of approximately $30 to $35 million, of between $1.20 and $1.40 per share

Earnings Guidance for 2018

The 2018 earnings guidance reflects consolidated results for the Company and has not been adjusted to incorporate the completion of a potential spin-off transaction.

The Company expects full year 2018 earnings per common diluted share of between $1.15 and $1.40, including spin-off related transaction costs of approximately $30 to $40 million, compared with its previous earnings guidance of between $0.95 and $1.20 per share, including $30 to $35 million of transaction costs. Excluding transaction costs, the Company anticipates full year 2018 earnings per common diluted share of between $1.45 and $1.65 compared with its previous guidance of between $1.20 and $1.40 per share. Refer to the 2018 Full Year Guidance and Outlook table for further information regarding the spin-off related transaction costs and other supplemental guidance details.

GUIDANCE:

Trinity Industries sees FY2018 EPS of $1.45-$1.65, versus the consensus of $1.40.

For earnings history and earnings-related data on Trinity Industries (TRN) click here.

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