NYSE$TRN

Trinity Industries Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported mixed quarterly results with strong orders and deliveries offset by labor and supply chain challenges.

Trinity Industries reported first quarter results with revenues of $473 million and GAAP EPS of $0.09. The company received orders for 5,055 railcars and delivered 2,470 railcars. Lease fleet utilization stood at 96.5% with a Future Lease Rate Differential of positive 2.4%.

  • Total company revenues of $473 million
  • GAAP EPS of $0.09 and adjusted EPS of $0.03
  • Lease fleet utilization of 96.5% and FLRD of positive 2.4%
  • New railcar orders of 5,055 and railcar deliveries of 2,470

Headline financials

Total Revenue

$473M

Previous: $399M+18.5%
EPS (adj)

$0.03

Previous: $0.07-57.1%
Fleet Utilization

96.5%

Previous: 94.5%+2.1%
Railcar Deliveries

2.5K

Previous: 1.9K+30.3%
New Railcar Orders

5.1K

Previous: 1.4K+258.5%
Capital Expenditures

-$2.3M

Previous: -$8.5M+72.9%
Free Cash Flow

-$3M

Previous: -$5.2M+42.3%
Net Income

-$700K

Previous: $3.3M-121.2%
Operating Income

$54.8M

Previous: $60.2M-9.0%
Gross Profit

$74.2M

Previous: $103M-27.8%
Cash & Equivalents

$143M

Previous: $178M-19.6%
Total Assets

$8.29B

Previous: $8.78B-5.5%
Stock-Based Comp

$5.1M

Previous: $5.1M+0.0%

Revenue & EPS history

Trinity · Revenue · Quarterly

$473M

Q1 2022+18.5%vs Q1 2021
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Trinity · $574M total across 2 segments · Q1 2022

  • Rail Products
    $391M+49.8%
  • Railcar Leasing and Services
    $183M-0.2%

Forward guidance

Trinity provided guidance for 2022 including industry deliveries of 40,000 to 50,000 railcars, net investment in the lease fleet of $450 million to $550 million, manufacturing capital expenditures of $35 million to $45 million, and EPS of $0.85 to $1.05.

Tailwinds

  • Industry deliveries of 40,000 to 50,000 railcars
  • Net investment in the lease fleet of $450 million to $550 million
  • Manufacturing capital expenditures of $35 million to $45 million
  • EPS of $0.85 to $1.05
  • Confident that deliveries in 2022 will be strong

Headwinds

  • Excludes gains on insurance recoveries and other items outside of our core business operations
  • Labor challenges persist
  • Supply chain challenges persist
  • Pressured near-term segment margin
  • Higher costs associated with external deliveries in the Rail Products Group

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.6%

Avg return

Earnings day

-1.6%

Avg return

5 days after

-0.2%

Avg return

30 days after

46%

31 / 67 earnings

Positive

+19.1%

Q2 2012

Best reaction

-25.4%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.0%+16.6%+5.2%
Q3 2025-2.7%-6.2%-4.7%
Q1 2025-2.9%-1.9%+2.5%
Q4 2024-8.3%-10.0%-14.1%
Q3 2024-8.8%-5.4%+5.5%
Q2 2024+2.8%+1.5%-0.2%
Q1 2024+15.5%+17.3%+20.9%
Q4 2023-7.3%-7.4%-0.5%
Q3 2023+15.9%+13.7%+23.8%
Q2 2023+2.5%-1.9%-4.4%
Q1 2023-8.7%-9.7%-9.9%
Q4 2022-9.6%-5.5%-19.4%
Q3 2022+7.4%+20.1%+30.1%
Q2 2022+6.0%+7.7%+7.3%
Q1 2022-7.0%-11.1%-18.4%
Q4 2021-5.8%-5.5%+9.7%
Q3 2021+0.5%-2.1%-6.0%
Q2 2021-0.8%+0.0%+5.9%
Q1 2021-2.9%-1.8%-0.5%
Q4 2020-2.8%+2.2%-10.2%
Q3 2020-5.7%-7.3%+0.8%
Q2 2020-7.7%-8.5%-4.9%
Q1 2020+10.4%+4.1%+14.3%
Q4 2019+5.7%-1.0%-26.6%
Q3 2019+1.1%+6.2%+15.0%
Q2 2019-9.1%-5.9%-19.2%
Q1 2019-11.5%-9.5%-13.9%
Q4 2018-2.3%-6.6%-18.1%
Q3 2018-18.3%-23.3%-13.8%
Q2 2018+1.6%+2.1%-0.1%
Q1 2018-0.1%+0.4%+11.0%
Q4 2017-1.4%-6.1%-9.9%
Q3 2017-8.2%-7.8%-1.0%
Q2 2017-3.4%-1.8%+2.9%
Q1 2017+3.0%+0.5%-2.6%
Q4 2016+1.2%-3.8%-4.0%
Q3 2016-2.4%-4.8%+22.0%
Q2 2016+4.2%+1.0%+17.0%
Q1 2016+4.0%
Q4 2015-25.4%
Q3 2015+4.6%
Q2 2015+4.6%
Q1 2015-12.5%
Q4 2014+6.8%
Q3 2014-2.1%
Q2 2014+1.5%
Q1 2014+4.8%
Q4 2013+10.4%
Q3 2013+7.3%
Q2 2013+6.2%
Q1 2013-3.3%
Q4 2012-3.6%
Q3 2012-3.9%
Q2 2012+19.1%
Q1 2012+1.6%
Q4 2011+5.1%
Q4 2010+4.2%
Q3 2011+4.2%
Q2 2011-13.8%
Q1 2010-4.1%
Q1 2011+6.6%
Q4 2008+2.6%
Q3 2009-3.2%
Q3 2010-3.2%
Q2 2010-1.7%
Q4 2009-1.7%
Q2 2009-1.7%

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