Trinity Industries Inc. (TRN) is set to release third-quarter 2015 results after the market closes on Oct 22.
In the last quarter, the company posted a positive earnings surprise of 23.15%. Let’s see how things are shaping up for this announcement.
Factors at Play this Quarter
Weak oil prices should be a major headwind for Trinity Industries in this quarter. Moreover, adverse foreign currency movements are expected to hurt the company’s earnings. The decline in scrap metal prices is also expected to impact Trinity Industries’ third quarter results adversely.
Concerns regarding declining lease rates and a decrease in freight traffic in general may limit the demand of railcars. Moreover, uncertainty over new rules by the Federal regulators over safety measures is going to delay the replacement decisions of existing railcars and tank cars of its customers, which may subdue growth.
Earnings Whispers
Our proven model does not conclusively show that Trinity is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: Trinity Industries has an earnings ESP of -1.74%. This is because the Most Accurate estimate stands at $1.13 cents while the Zacks Consensus Estimate is pegged higher at $1.15 cents.
Zacks Rank: Trinity carries a Zacks Rank #3 (Hold) which increases predictive power of ESP. However, an ESP of -1.74% makes surprise prediction difficult.
Stocks to Consider
Here are some companies you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter.
Air Lease Corporation AL with an Earnings ESP of +2.86% and a Zacks Rank #2.
FLY Leasing Limited FLY with an Earnings ESP of +7.25% and a Zacks Rank #3.
Canadian National Railway Company CNI with an Earnings ESP of +1.14% and a Zacks Rank #3.
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