Why Trinity Industries (TRN) Hit An All-Time High Today

NEW YORK (TheStreet) -- Trinity Industries  (TRN) hit an all-time high of $67.62 Thursday after the rail car manufacturer reported fourth-quarter results and issued guidance that surpassed analysts' expectations.

Net income surged in the fourth quarter to $112.8 million, or $1.44 per share, from $71.3 million, or 90 cents per share, in the same period one year earlier. Net income from continuing operations also spiked year over year to $118.9 million, or $1.43 a share, from $71 million, or 90 cents a share. Revenue increased 24% year over year to $1.26 billion from $1.01 billion.

Analysts polled by Thomson Reuters expected earnings per share of $1.41 on revenue of $1.22 billion.

For first quarter of the fiscal year 2014, the company expects EPS of $2.45 to $2.65, which easily beats analysts' estimates of $2.05. For the full year, Trinity anticipates EPS of $6.30 to $7.00, while analysts expect $6.02.

Must Read: Trade-Ideas: Trinity Industries (TRN) Is Today's New Lifetime High Stock

TheStreet Ratings team rates TRINITY INDUSTRIES as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate TRINITY INDUSTRIES (TRN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 17.4%. Since the same quarter one year prior, revenues rose by 22.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 59.49% and other important driving factors, this stock has surged by 43.24% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TRN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • TRINITY INDUSTRIES reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TRINITY INDUSTRIES increased its bottom line by earning $3.17 versus $1.77 in the prior year. This year, the market expects an improvement in earnings ($4.67 versus $3.17).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 57.6% when compared to the same quarter one year prior, rising from $63.20 million to $99.60 million.
  • You can view the full analysis from the report here: TRN Ratings Report

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