Trinity Industries Up 4% As Q4 Results Top Estimates

(RTTNews) - Shares of Trinity Industries, Inc. (TRN) gained more than four percent in extended trading on Wednesday after the rail-car manufacturer reported results for the fourth quarter that topped analysts' expectations. The company also provided earnings guidance for the full-year 2015, in line with Street view.

The company also reported a profit for the quarter that grew from last year, reflecting operating profit and revenue growth across most business segments.

The Dallas, Texas-based company reported record net income of $138.2 million or $0.86 per share for the fourth quarter, higher than $112.8 million or $0.72 per share in the prior-year quarter.

On average, 12 analysts polled by Thomson Reuters expected the company to post earnings of $0.83 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter surged 32 percent to $1.66 billion from $1.26 billion in the same quarter last year, and topped nine Wall Street analysts' consensus estimate of $1.62 billion.

Segment-wise, rail group's revenues surged 25 percent to a record of $1.07 billion, and revenues from inland barge group grew to $168 million from $143 million last year.

The rail group shipped 8,460 railcars and received orders for 17,770 railcars during the fourth quarter, resulting in a record backlog of 61,035 units with a record value of $7.2 billion.

Revenues from construction products group was $117 million, edging down from $118 million last year. Railcar leasing and management services group revenues increased 24.7 percent to $238 million from the year-ago quarter. Energy equipment group revenues improved to $284 million from $189 million last year.

"During 2014, we utilized the strengths of our integrated business model to achieve record financial results, with all of our business segments reporting higher revenue and profit. Our Rail Group received a record number of orders in 2014, and its $7.2 billion order backlog provides significant production visibility," Chairman, President and CEO Timothy Wallace said in a statement.

Looking ahead to fiscal 2015, Trinity expects earnings in a range of $4.00 to $4.40 per share, while Street is currently looking for full-year 2015 earning of $4.28 per share.

The company added that it anticipates the level of quarterly earnings per share in 2015 to be relatively consistent throughout the year.

The company noted that first-quarter 2014 results included $0.72 per share of earnings related to sales of new and existing leased railcars to Element. As a result, it expects first-quarter 2015 earnings per share to be below last year's level.

"We invested over $700 million in acquisitions within our Energy Equipment Group, which added complementary product lines that provide long-term growth opportunities," Wallace added.

TRN closed Wednesday's regular trading session at $30.14, down $0.08 or 0.26% on a volume of 3.29 million shares. However, the stock gained $1.22 or 4.05% in after-hours trading.