Companies can be successful in niche markets. Others are
diversified, offering products and services in several different
markets.Trinity Industries (
) is the latter, poised to benefit from an improving economy.
The company caters to the energy, transportation, chemical and
construction sectors, providing everything from railcars and
highway guardrails to aggregates, inland barges and structural
wind towers. Demand remains strong for the company's energy
storage and transportation products.
The company's consistent track record of earnings and sales
growth speaks for itself.
Shares soared 9% when the company reported third-quarter
results and gave bullish guidance in late October. Earnings of
$1.26 a share rose 59% from a year before. Sales rose 22% to $1.1
billion, a nice acceleration from 7% growth in the second
quarter. Its Rail Group made up 72% of total revenue.
Commenting on the results, CEO Tim Wallace said: "Our
portfolio of businesses remains well-positioned to serve the
fast-growing North American oil, gas and chemical industries, and
we are prepared to respond to demand increases in other
industries should broader economic activity improve."
Among the highlights of the quarter, the company's rail
segment received orders for 5,610 new railcars, giving it a
current backlog of just more than 40,000 units worth $5.1
billion. Its structural wind towers business received orders
totaling $442 million.
Full-year profit is seen rising 42% in 2013 and 27% in 2014.
Estimates have been heading higher. Fourth-quarter earnings
aren't due until mid-February.
In December, the company announced a quarterly dividend of 15
cents a share, payable Jan. 31 to shareholders of record Jan. 15.
Trinity currently yields 1.1%.
Trinity has been consolidating gains in healthy fashion as it
sets up in a cup-with-handle base with a potential buy point of