Trinity Industries (NYSE:TRN) Hits New 12-Month Low on Disappointing Earnings

Key Points

• Trinity Industries shares hit a new 52-week low of $22.38 after reporting quarterly earnings that missed analyst expectations, showing $0.19 EPS against a consensus estimate of $0.31.
• Revenue also fell significantly, totaling $506.20 million for the quarter—39.8% lower than the previous year's $839.90 million.
• The company announced a dividend of $0.30 per share, representing a 5.1% yield, despite a dividend payout ratio of 74.07%.

Trinity Industries, Inc. (NYSE:TRN - Get Free Report) hit a new 52-week low on Friday following a dissappointing earnings announcement. The stock traded as low as $22.38 and last traded at $23.33, with a volume of 1606401 shares changing hands. The stock had previously closed at $24.98.

The transportation company reported $0.19 earnings per share for the quarter, missing analysts' consensus estimates of $0.31 by ($0.12). Trinity Industries had a net margin of 3.83% and a return on equity of 8.49%. The firm had revenue of $506.20 million during the quarter, compared to analyst estimates of $589.96 million. During the same quarter in the previous year, the business posted $0.66 earnings per share. Trinity Industries's revenue for the quarter was down 39.8% compared to the same quarter last year.

Trinity Industries Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 31st. Stockholders of record on Tuesday, July 15th were issued a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 5.0%. The ex-dividend date was Tuesday, July 15th. Trinity Industries's dividend payout ratio (DPR) is presently 74.07%.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the stock. The Goldman Sachs Group dropped their target price on shares of Trinity Industries from $36.00 to $31.00 and set a "neutral" rating on the stock in a research report on Thursday, April 17th. Susquehanna dropped their target price on shares of Trinity Industries from $26.00 to $24.00 and set a "neutral" rating on the stock in a research report on Tuesday.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Jennison Associates LLC increased its stake in Trinity Industries by 1.9% in the second quarter. Jennison Associates LLC now owns 3,731,145 shares of the transportation company's stock valued at $100,778,000 after purchasing an additional 69,751 shares during the period. Y Intercept Hong Kong Ltd acquired a new position in Trinity Industries in the second quarter valued at $220,000. Envestnet Asset Management Inc. increased its stake in Trinity Industries by 1.3% in the second quarter. Envestnet Asset Management Inc. now owns 120,081 shares of the transportation company's stock valued at $3,243,000 after purchasing an additional 1,548 shares during the period. AlphaQuest LLC increased its stake in Trinity Industries by 160.5% in the second quarter. AlphaQuest LLC now owns 71,044 shares of the transportation company's stock valued at $1,919,000 after purchasing an additional 43,772 shares during the period. Finally, First Citizens Bank & Trust Co. acquired a new position in Trinity Industries in the second quarter valued at $535,000. 86.57% of the stock is currently owned by institutional investors and hedge funds.

Trinity Industries Trading Up 3.6%

The company has a debt-to-equity ratio of 4.66, a current ratio of 1.96 and a quick ratio of 0.87. The company has a market capitalization of $1.97 billion, a price-to-earnings ratio of 21.17 and a beta of 1.49. The business's 50 day simple moving average is $26.52 and its 200 day simple moving average is $28.78.

Trinity Industries Company Profile

Trinity Industries, Inc provides rail transportation products and services under the TrinityRail name in North America. It operates in two segments, Railcar Leasing and Management Services Group, and Rail Products Group. The Railcar Leasing and Management Services Group segment leases freight and tank railcars; originates and manages railcar leases for third-party investors; and provides fleet maintenance and management services.