NYSE$TRN

Trinity Industries Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Trinity's Q4 2020 earnings reflected a decline in railcar demand due to the COVID-19 pandemic, with leasing operations performing well but offset by headwinds from lower lease portfolio sales and railcar deliveries. The company responded with strong management of fleet maintenance costs and significant reductions in headcount and SE&A.

Trinity Industries reported Q4 2020 revenues of $416 million and a GAAP loss per share of $(1.13), with an adjusted EPS of $0.04. The full year saw operating cash flow of $652 million and free cash flow of $113 million after dividends and investments. The company returned $285 million to stockholders during the year.

  • Quarterly total company revenues were $416 million.
  • Quarterly GAAP EPS was $(1.13) and adjusted EPS was $0.04.
  • Lease fleet utilization was 94.5% at year-end.
  • Railcar deliveries totaled 2,235, with new railcar orders of 1,170.

Headline financials

Total Revenue

$416M

Previous: $851M-51.1%
EPS (adj)

$0.04

Previous: $0.35-88.6%
Fleet Utilization

94.5%

Previous: 96.0%-1.6%
Railcar Deliveries

2.2K

Previous: 6.9K-67.5%
New Railcar Orders

1.2K

Previous: 2.6K-54.7%
Capital Expenditures

$31.6M

Previous: $33.7M-6.2%
Free Cash Flow

$113M

Previous: $196M-42.3%
Net Income

-$127M

Previous: $21.5M-691.6%
Operating Income

$36.9M

Previous: $97.2M-62.0%
Gross Profit

$120M

Previous: $176M-31.6%
Cash & Equivalents

$132M

Previous: $166M-20.6%
Total Assets

$8.7B

Previous: $8.7B+0.0%
Stock-Based Comp

$7.2M

Previous: $7.8M-7.7%

Revenue & EPS history

Trinity · Revenue · Quarterly

$416M

Q4 2020-51.1%vs Q4 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Trinity · $503M total across 2 segments · Q4 2020

  • Rail Products
    $313M-64.7%
  • Railcar Leasing and Services
    $189M-39.6%

Forward guidance

Market uncertainty related to COVID-19 remains the predominant story on the economic and rail industry outlook. The company expects cash flow from operations to range between $625 million to $675 million for the 2021 year.

Tailwinds

  • Early indicators of a recovery with improving year over year railcar traffic volumes.
  • Slowing train speeds.
  • Higher overall cycle times for shippers, which require more railcars to return to service.
  • Lease fleet utilization has remained stable through the beginning of the year.
  • Seeing some improvement in lease rates.

Headwinds

  • Customers are hesitant in their long-term planning for railcar assets.
  • Industry forecasts currently suggest a recovery in the second half of 2021.
  • Challenging year for deliveries.
  • Renewing lease rates create headwinds.
  • Challenging market environment in 2021.

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 Q4 2020

Historical avgQ4 2020

-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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