DALLAS - Trinity Industries , Inc. (NYSE:TRN) has reported a robust start to the year with first-quarter earnings surpassing analyst expectations and issuing an optimistic earnings forecast that exceeded the consensus. The company's stock responded positively, rising 2.89% as investors welcomed the upbeat news.
For the first quarter ended March 31, 2024, the Dallas-based rail transportation product and service provider announced an adjusted earnings per share (EPS) of $0.33, which was notably higher than the analyst estimate of $0.23. This represents a significant year-over-year (YoY) improvement in adjusted EPS. Revenue for the quarter reached $810 million, a 26% increase YoY and well ahead of the consensus estimate of $748.6 million.
Trinity's lease fleet utilization stood at 97.5%, with the Future Lease Rate Differential (FLRD) marking a positive 34.7% at quarter-end. The company delivered 4,695 railcars during the quarter and reported a healthy backlog of $2.9 billion, signaling sustained demand for its products and services.
Looking ahead, Trinity Industries has raised its full-year 2024 EPS guidance to a range of $1.35 to $1.55, outpacing the analyst consensus of $1.42. This revised outlook reflects the company's confidence in its operational performance and market position.
Jean Savage, Trinity's Chief Executive Officer and President, expressed satisfaction with the quarter's results, attributing the success to strong performance across the company's segments. "Our first quarter performance shows the momentum starting to flow through our business, resulting in better operations and stronger financial results," Savage commented. She highlighted the 22% YoY revenue growth in the Railcar Leasing and Services segment and an 82% YoY increase in operating profit in the Rail Products Group, driven by higher deliveries and improved operational and labor efficiencies.
The positive market response, as evidenced by the 2.89% stock price increase, underscores investor confidence in Trinity's strategic direction and execution capabilities. The company anticipates further growth as it re-prices its lease fleet upward and capitalizes on the strong market rates over expiring rates.
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