TRINITY INDUSTRIES Reports Fourth Quarter FY2022 Results on February 21 2023

Earnings Overview

TRINITY INDUSTRIES ($NYSE:TRN) revealed their Q4 FY2022 results ending December 31 2022 on February 21 2023 with total revenues of USD 31.3 million, a decrease of 76.6% compared to the same quarter of 2021. Net income for the period was reported at USD 591.2 million, a rise of 25.2% year-on-year.

Transcripts Simplified

Trinity Industries reported fourth quarter GAAP EPS of $0.46 and adjusted EPS of $0.44, up $0.10 and $0.36 year-over-year respectively. For the full year, GAAP and adjusted EPS were $1.02 and $0.94, representing 176% growth. Trinity Industries also introduced 2023 EPS guidance of $1.50 to $1.70, representing 70% growth.

The company also completed its acquisition of Holden America in the fourth quarter. Lastly, railcar load volumes in 2022 remained even with 2021, while the number of railcars in storage ticked up but remained below the five-year average.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Trinity Industries. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Trinity Industries. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Trinity Industries. More…

Key Ratios Snapshot

Some of the financial key ratios for Trinity Industries are shown below. More…

Stock Price

The company opened at a price of $27.4 per share and closed at $26.1, representing an 8.1% decrease from the previous closing price of $28.4. This sharp decline caught investors by surprise as the company has a strong track record and is known for its consistent growth. The drop in stock prices could be attributed to investors’ concerns regarding the outlook of the industry due to the ongoing pandemic and economic uncertainty. The company’s operating cash flow also increased significantly, indicating a strong demand for its products and services.

Overall, TRINITY INDUSTRIES continues to demonstrate strong growth in spite of the challenges posed by the current economic climate. While there may be short term volatility, the long term outlook for this company remains positive. Live Quote…

Analysis

At GoodWhale, we have conducted an analysis of TRINITY INDUSTRIES‘ financials. Our results have rated TRINITY INDUSTRIES as a medium risk investment when it comes to financial and business aspects. During our analysis, we detected 3 risk warnings across TRINITY INDUSTRIES’ income sheet, balance sheet and cash flow statement. To gain access to more information about these risk warnings, register on goodwhale.com. You will be able to see the details of our analysis, the risk warnings in greater detail and the impact that the warnings may have on TRINITY INDUSTRIES’ financials. We hope that this analysis helps you make a more informed investment decision when considering an investment in TRINITY INDUSTRIES. More…

Peers

Trinity Industries Inc, a leading provider of transportation products and services, competes with FreightCar America Inc, Seaco Ltd, and GATX Corp. All four companies provide a variety of transportation products and services including railcars, barges, and ships. Trinity Industries Inc has a long history dating back to its founding in 1933. The company has a strong reputation for quality products and services.

– FreightCar America Inc ($NASDAQ:RAIL)

FreightCar America Inc. is a publicly traded company with a market capitalization of $73.48 million as of 2022. The company is involved in the design and manufacture of railcars for the transportation of freight. The company has a negative return on equity of 42.6%.

– Seaco Ltd ($OTCPK:SEAOF)

GATX Corporation is an American railcar leasing company. The company was founded in 1898 and is headquartered in Chicago, Illinois. As of 2018, GATX had a fleet of over 100,000 railcars and owned or managed nearly 200,000 more. The company operates in three segments: Rail North America, Rail International, and Portfolio Management.

Summary

TRINITY INDUSTRIES reported a sharp decrease in its overall revenue for the fourth quarter of FY2022, with a 76.6% drop compared to the same quarter of the previous year. Despite this, the company reported a 25.2% increase in net income, coming in at USD 591.2 million. On the day of the announcement, the stock price dropped. While the release of these figures presents a mixed outlook, it is worth noting that TRINITY INDUSTRIES has experienced significant growth in the past, and with their sizable net income, they may still be an attractive investment opportunity for those willing to take on some risk.