Trinity Industries Inc. (NYSE:TRN) Has Revenue Visibility into 2015


Dallas, Texas 11/05/2013 (Financialstrend) – The $4.41 billion market capped railroad operator Trinity Industries Inc. (NYSE:TRN) has been in the hitting the headlines of the financial press for all the right reasons over the past few days. On October 30, post market closure, the company had announced “Highest Quarterly Net Income and EPS in the Company’s History” from its third quarter operations to attract investor interest.  It followed up the strong quarter result announcement with news that it has signed off to acquire “Seabord Railcar Repair” through its subsidiary “Trinity Railcar Repair”. As part of the purchase, Trinity would get control over two  key maintenance facilities along with access to important railroad interchange facilities. On the back of the acquisition announcement, the stock of this firm posted a 2.5% increase in its market value.

This market rally yesterday was preceded by a 13.35% increase in its market value during trading over the last 5 days. This was on the back of surging revenue the company reported from its 3Q operations. Commenting on the third quarter results, the company Chairman, CEO and President Timothy Wallace has been quoted as saying, “This is a great accomplishment over the years in terms of aligning our manufacturing capacity with the strong demand for our products that serves the oil, gas, and chemical industries. The Rail Group maintained its record $5.1 billion backlog. I am pleased that our structural wind towers business increased its backlog and now has production visibility through 2015”.

In its third quarter, the company increased its earnings per share by a huge 58% to $1.26 per share. The firm executed order for 5,610 new railcars which built up the existing pipeline backlog to 40,050 units translating to a huge $5.1 billion revenue stream over the next few quarters. Based on these anticipated growth in revenue, the firm has upped its fourth quarter earnings forecast. Its expected its earnings per share to come in between $1.24 and $1.34 per share for the three months of operations in 4Q.