A month has gone by since the last earnings report for Triton International (TRTN). Shares have added about 5.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Triton due for a pullback? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Triton International Q1 Earnings Miss
Triton International’s first-quarter 2020 earnings (excluding 1 cents from non-recurring items) of 93 cents per share missed the Zacks Consensus Estimate of $1.03. The bottom line also declined 21.85% year over year. Results were hurt by low demand for new containers due to drop in exports from China due to the coronavirus pandemic. Further, quarterly revenues of $321.5 million declined 6.7% year over year due to 5.3% fall in revenues from operating leases.
Equipment trading revenues of $15.38 million plunged 13.7% from the year-ago quarter’s figure. Trading margin came in at $1.93 million compared with $3.58 million in the prior-year quarter.
The company generated a return on equity of 13.1% in the reported quarter compared with 17.2% in the year-ago quarter. Total operating expenses inched up to $179.4 million.
This company exited the first quarter with average utilization of 95.4%, down 40 basis points sequentially.
The company repurchased 1.4 million common shares during the first quarter. Also, it repurchased an additional 0.7 million common shares through Apr 17 under the share repurchase update. Triton’s Board of Directors increased the share repurchase authorization to $200.0 million. Moreover, the board announced a quarterly cash dividend of 52 cents per share, payable on Jun 25, to its shareholders of record as of Jun 11.
The company’s second-quarter 2020 performance is likely to be affected by weak economic and trade activity due to the global economic slowdown from COVID-19. Thanks to this, profitability in the second quarter is likely to decline sequentially. Moreover, Triton’s profitability from the second quarter through the end of 2020 will depend on how rapidly the global economy and trade volumes recover from COVID-19 shocks.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
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Triton International Limited (TRTN) : Free Stock Analysis Report
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