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Will Trinity Industries (TRN) Surprise Earnings This Season? - Analyst Blog

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Trinity Industries Inc. ( TRN ) is set to release fourth-quarter fiscal 2014 results after the market closes on Feb 18.

In the last quarter, the company posted a positive earnings surprise of 7.14%. Let's see how things are shaping up for this announcement.

Factors at Play this Quarter

Declining oil prices coupled with easy availability of tank cars may undermine the need for railroads in order to transport crude oil. As per data released by Reuters, the lease rates in Jan 2015 fell to $1300 from $2,450 recorded in the preceding month.

However, railcars are experiencing increased demand in sectors beyond oil.like chemicals, grain, autos and construction materials. As a result, many railroads have increased the number of railcars and locomotives in an attempt to lessen track congestion. Earlier, Trinity had announced that it plans to deliver 8,950 cars to GATX Corp., which may further boost the company's business.

Earnings Whispers

Our proven model does not conclusively show that Trinity is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.

Zacks ESP: The Most Accurate estimate and the Zacks Consensus Estimate are both poised at 84 cents. Hence, the ESP is 0.00%.

Zacks Rank: Trinity carries a Zacks Rank #3 (Hold). While this increases the predictive power, we also need to have a positive ESP to be confident of an earnings beat.

Meanwhile, we caution against stocks with a Zacks Rank #4 and 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some companies you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter.

Juniper Networks, Inc. ( JNPR ) with an Earnings ESP of +4.76% and a Zacks Rank #1.

Cablevision Systems Corporation ( CVC ) with an Earnings ESP of +11.11% and a Zacks Rank #3.

Comcast Corporation ( CMCSA ) with an Earnings ESP of +1.30% and a Zacks Rank #3.

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JUNIPER NETWRKS (JNPR): Free Stock Analysis Report

CABLEVISION SYS (CVC): Free Stock Analysis Report

COMCAST CORP A (CMCSA): Free Stock Analysis Report

TRINITY INDS IN (TRN): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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