Why Trinity Industries Inc's Shares Popped 12% Today
What: Shares of Trinity Industries Inc jumped as much as 12% today after the company reported outstanding earnings and guidance numbers.
So what: Second-quarter revenue was up 13% to $1.68 billion and net income jumped 29% to $212.0 million. On a per-share basis, earnings were $1.33, which was an increase of 32% from a year ago and well ahead of the $1.08 Wall Street expected.
Earnings guidance for the full year was also increased to $4.45 to $4.75 per share from a previous range of $4.10 to $4.45 per share.
Now what: The Rail Group was the clear driver of strong results, and that doesn't look to be slowing anytime soon. The group's backlog at the end of the second quarter was $6.9 billion and orders outpaced shipments by 2,640 units. Given the bullish results and shares trading at just seven times forward earnings estimates, I think this stock has more to gain in the coming year.
The article Why Trinity Industries Inc's Shares Popped 12% Today originally appeared on Fool.com.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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