Triton International Limited (TRTN) Tops Q3 EPS by 3c

Triton International Limited (NYSE: TRTN) reported Q3 EPS of $1.17, $0.03 better than the analyst estimate of $1.14. Revenue for the quarter came in at $336.7 million versus the consensus estimate of $335.48 million.

Third Quarter Highlights:

• Adjusted net income was $85.0 million or $1.16 per diluted share, a decrease of 0.9% per diluted share from the third quarter of 2018.
• Net income attributable to common shareholders was $85.9 million or $1.17 per diluted share.
• Utilization averaged 96.7% in the third quarter of 2019.
• Triton repurchased 1.6 million common shares during the third quarter. As of October 18, 2019, over 8.7 million shares have been repurchased since the inception of the program.
• Triton announced a quarterly dividend of $0.52 per common share payable on December 20, 2019 to shareholders of record as of December 3, 2019.

“Triton achieved solid results in the third quarter of 2019," commented Brian M. Sondey, Chief Executive Officer of Triton. “We generated $85.0 million of Adjusted net income in the third quarter, or $1.16 of Adjusted net income per share, and we realized an annualized Return on equity of 16.1%.”

“Triton's financial performance has remained solid despite facing weak leasing demand since last fall, and leasing activity remained slow throughout the traditional peak third quarter. Global economic conditions have softened this year, and the ongoing trade dispute between the United States and China continues to create uncertainty and impact shipping activity. Fortunately, the supply of containers remains generally well balanced due to reduced production of new containers, and while our utilization continued to gradually trend down during the third quarter, it remains strong at 96.1% as of October 18, 2019. Triton\'s financial performance has also been supported by our industry-leading cost structure and operating capabilities, our well-protected long-term lease portfolio, and disciplined use of our strong cash flow.”

“Triton’s investment level has been limited so far this year. As of October 18, 2019, we have purchased $247.7 million of containers for delivery in 2019. However, Triton continues to use its strong cash flow to drive shareholder value. Our regular dividend currently provides almost a six percent annual yield, and we also continue to actively repurchase shares of our common stock. We repurchased 1.6 million common shares during the third quarter, and have purchased over 8.7 million shares since last August, leading to a 10.8% reduction in our diluted share count. In addition, we believe the repurchase of the third-party investor interests earlier this year was an attractive investment in our existing container fleet. Overall, our strong cash flow, unrivaled operating capabilities and range of financing options give us many levers to drive shareholder value.”

Outlook

“Our customers and market forecasters have reduced their expectations for containerized trade growth this year following the weak summer peak season, and most are currently projecting growth will be just slightly positive in 2019. We are also heading into the seasonally-slower time of year. As a result, we expect our key operating metrics will continue to gradually decrease over the next several quarters. However, the short ordering cycle for containers and multiple drivers for container leasing demand typically limit the duration of soft market conditions, and we continue to benefit from numerous advantages and strong, stable cash flow. Overall, we expect our Adjusted net income per share will decrease from the third quarter to the fourth quarter, though we also expect our financial performance will remain solid.”

For earnings history and earnings-related data on Triton International Limited (TRTN) click here.

You May Also Be Interested In

• Wendy's U.S. president to resign, company to create COO role
• Kaiser Aluminum names Fred Stephan as CEO, effective November 2026
• Freightos Limited (CRGO) Tops Q2 EPS by 3c ; Offers Guidance