Trinity Industries Up 5% As Q4 Results Top Estimates, Rosy Outlook

(RTTNews) - Shares of Trinity Industries, Inc. (TRN) gained nearly five percent after the rail-car manufacturer reported results for the fourth quarter that topped analysts' expectations. The company also provided earnings guidance for first quarter and full-year 2014, well above Street view.

The company reported a profit for the quarter that surged from last year, reflecting strong double-digit revenue growth. "We achieved a number of key financial milestones, reporting record revenues, net income and earnings per share for both the fourth quarter and the full year. I am very proud of our people, whose capabilities and hard work enabled us to realign a portion of our manufacturing capacity to serve customers for products in the oil, gas, and chemical industries," Chairman, President and CEO Timothy Wallace said in a statement.

The Dallas, Texas-based company reported net income of $112.8 million or $1.44 per share for the fourth quarter, higher than $71.3 million or $0.90 per share in the prior-year quarter.

Net income from continuing operations surged to $118.9 million or $1.43 per share from $71.0 million or $0.90 per share in the year-ago quarter.

On average, 11 analysts polled by Thomson Reuters expected the company to post earnings of $1.41 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased 24 percent to $1.26 billion from $1.01 billion in the same quarter last year, and topped nine Wall Street analysts' consensus estimate of $1.22 billion.

Segment-wise, rail group's revenues surged 50 percent to a record of $856 million, while revenues from inland barge group declined to $143 million from $165 million last year.

The rail group shipped 7,280 railcars and received orders for 7,125 railcars during the fourth quarter, resulting in a backlog of 39,895 units with a value of $5.0 billion.

Revenues from construction products group was $118 million, up from $110 million last year. Railcar leasing and management services group revenues increased to $191 million from $151 million in the year-ago quarter. Energy equipment group revenues improved to $189 million from $167 million last year.

For fiscal 2013, the company reported net income of $375.5 million or $4.75 per share, higher than $255.2 million or $3.19 per share in the prior year. Net income from continuing operations surged to $386.1 million or $4.67 per share from $251.9 million or $3.17 per share in the year ago.

Revenues for the full year increased 15 percent to $4.37 billion from $3.81 billion in the previous year.

Analysts expected the company to report full-year 2013 earnings of $4.65 per share on annual revenues of $4.35 billion.

Looking ahead to the first quarter of fiscal 2014, the company anticipates earnings in the range of $2.45 to $2.65 per share. Analysts currently estimate revenues of $2.05 per share for the quarter.

For fiscal 2014, Trinity expects earnings in a range of $6.30 to $7.00 per share. Street is currently looking for full-year 2014 earning of $6.02 per share.

"During 2014, we will continue to invest resources to position our company to pursue opportunities for infrastructure-related products that support the growing needs in the energy, chemical, transportation, and construction industries. We have a great deal of positive momentum occurring within Trinity," Wallace added.

TRN closed Wednesday's regular trading session at $60.75, up $0.15 or 0.25% on a volume of 1.79 million shares. The stock gained a further $2.95 or 4.86% in after-hours trading.