It has been about a month since the last earnings report for Triton International (TRTN). Shares have added about 13.2% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important catalysts.
Triton International Q2 Earnings Miss
Triton International’s second-quarter 2020 earnings of 86 cents per share missed the Zacks Consensus Estimate of 89 cents. The bottom line also declined 25.2% year over year. Results were hurt by low volumes of container transport and COVID-19 led widespread economic shutdowns leading to significant slowdown in global trade. Further, quarterly revenues of $321.4 million declined 5.1% year over year due to 4.5% fall in revenues from operating leases.
Equipment trading revenues of $16.9 million plunged 27.2% from the year-ago quarter’s reported figure. Trading margin came in at $2 million compared with $4.5 million in the prior-year quarter.
The company generated a return on equity of 12.2% in the reported quarter compared with 16.2% in the year-ago quarter. Total operating expenses increased to $183.7 million.
Liquidity
The company exited the second quarter with average utilization of 95%, down 40 basis points sequentially.
Also, the company repurchased 2.1 million common shares during the second quarter. Also, it repurchased an additional 0.3 million common shares through Jul 22 under the share repurchase update. Triton's Board of Directors announced a quarterly cash dividend of 52 cents per share, payable on Sep 24, to its shareholders of record as of Sep 10.
Q3 Outlook
The company’s third-quarter 2020 performance is likely to be affected by weak economic and trade activity, thanks to the global economic slowdown stemming from the COVID-19 pandemic. However, with easing shutdowns in Europe and in the United States leasing activity have improved in July. Triton also expects its adjusted net income per share will increase from second quarter to the third quarter of 2020.
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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