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Unpacking Q3 Earnings: Trinity (NYSE:TRN) In The Context Of Other Heavy Transportation Equipment Stocks

TRN Cover Image

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at heavy transportation equipment stocks, starting with Trinity (NYSE: TRN).

Heavy transportation equipment companies are investing in automated vehicles that increase efficiencies and connected machinery that collects actionable data. Some are also developing electric vehicles and mobility solutions to address customers’ concerns about carbon emissions, creating new sales opportunities. Additionally, they are increasingly offering automated equipment that increases efficiencies and connected machinery that collects actionable data. On the other hand, heavy transportation equipment companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the construction and transport volumes that drive demand for these companies’ offerings.

The 13 heavy transportation equipment stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.

Luckily, heavy transportation equipment stocks have performed well with share prices up 14.9% on average since the latest earnings results.

Trinity (NYSE: TRN)

Operating under the trade name TrinityRail, Trinity (NYSE: TRN) is a provider of railcar products and services in North America.

Trinity reported revenues of $454.1 million, down 43.2% year on year. This print fell short of analysts’ expectations by 14.7%, but it was still a strong quarter for the company with full-year EPS guidance exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

“Trinity’s third quarter results highlight our Company’s agility and the strength of our business model to deliver favorable performance across all segments of the business,” said Trinity’s Chief Executive Officer and President, Jean Savage.

Trinity Total Revenue

Trinity delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 1.3% since reporting and currently trades at $27.48.

Is now the time to buy Trinity? Access our full analysis of the earnings results here, it’s free.

Best Q3: Greenbrier (NYSE: GBX)

Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE: GBX) supplies the freight rail transportation industry with railcars and related services.

Greenbrier reported revenues of $706.1 million, down 19.4% year on year, outperforming analysts’ expectations by 7.7%. The business had a stunning quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.

Greenbrier Total Revenue

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8.1% since reporting. It currently trades at $49.18.

Is now the time to buy Greenbrier? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Wabash (NYSE: WNC)

With its first trailer reportedly built on two sawhorses, Wabash (NYSE: WNC) offers semi trailers, liquid transportation containers, truck bodies, and equipment for moving goods.

Wabash reported revenues of $381.6 million, down 17.8% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations significantly.

Wabash delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 32.2% since the results and currently trades at $10.98.

Read our full analysis of Wabash’s results here.

Oshkosh (NYSE: OSK)

Oshkosh (NYSE: OSK) manufactures specialty vehicles for the defense, fire, emergency, and commercial industry, operating various brand subsidiaries within each industry.

Oshkosh reported revenues of $2.69 billion, down 1.9% year on year. This number missed analysts’ expectations by 5.8%. Overall, it was a slower quarter as it also logged a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

The stock is up 13% since reporting and currently trades at $153.25.

Read our full, actionable report on Oshkosh here, it’s free.

Blue Bird (NASDAQ: BLBD)

With around a century of experience, Blue Bird (NASDAQ: BLBD) is a manufacturer of school buses and complementary parts.

Blue Bird reported revenues of $409.4 million, up 16.9% year on year. This print surpassed analysts’ expectations by 7.7%. Overall, it was a very strong quarter as it also produced a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Blue Bird pulled off the biggest analyst estimates beat among its peers. The stock is down 10.2% since reporting and currently trades at $49.24.

Read our full, actionable report on Blue Bird here, it’s free.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.

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