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Q1 Earnings Roundup: Trinity (NYSE:TRN) And The Rest Of The Heavy Transportation Equipment Segment


Max Juang /
2024/06/28 5:00 am EDT

Wrapping up Q1 earnings, we look at the numbers and key takeaways for the heavy transportation equipment stocks, including Trinity (NYSE:TRN) and its peers.

Heavy transportation equipment companies are investing in automated vehicles that increase efficiencies and connected machinery that collects actionable data. Some are also developing electric vehicles and mobility solutions to address customers’ concerns about carbon emissions, creating new sales opportunities. Additionally, they are increasingly offering automated equipment that increases efficiencies and connected machinery that collects actionable data. On the other hand, heavy transportation equipment companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the construction and transport volumes that drive demand for these companies’ offerings.

The 11 heavy transportation equipment stocks we track reported a strong Q1; on average, revenues beat analyst consensus estimates by 3.4%. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and heavy transportation equipment stocks have held roughly steady amidst all this, with share prices up 1.6% on average since the previous earnings results.

Trinity (NYSE:TRN)

Begun in the 1930s as a butane tank manufacturer, Trinity Industries (NYSE:TRN) has grown into a diversified industrial company whose main businesses serve the rail transportation industry.

Trinity reported revenues of $809.6 million, up 26.2% year on year, topping analysts' expectations by 7.8%. It was a strong quarter for the company, with an impressive beat of analysts' earnings estimates.

“We are pleased with the progress exhibited in Trinity Industries’ first quarter results,” said Trinity’s Chief Executive Officer and President, Jean Savage.

Trinity Total Revenue

Trinity pulled off the fastest revenue growth of the whole group. The stock is up 14.2% since the results and currently trades at $29.67.

Is now the time to buy Trinity? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Wabash (NYSE:WNC)

Headquartered in Indiana, Wabash National (NYSE:WNC) is a diversified industrial company, mainly producing semi-trailers and liquid transportation systems.

Wabash reported revenues of $515.3 million, down 17% year on year, in line with analysts' expectations. It was a weak quarter for the company, with a miss of analysts' operating margin and earnings estimates.

The stock is down 16.6% since the results and currently trades at $21.46.

Read our full analysis of Wabash's results here.

Federal Signal (NYSE:FSS)

Known for its iconic “Q-Siren” in American fire trucks, Federal Signal (NYSE:FSS) produces emergency vehicle lighting and industrial signaling equipment.

Federal Signal reported revenues of $424.9 million, up 10.2% year on year, falling short of analysts' expectations by 0.2%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings.

The stock is down 1.9% since the results and currently trades at $83.56.

Read our full, actionable report on Federal Signal here, it's free.

Wabtec (NYSE:WAB)

Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE:WAB) provides equipment, systems, and its related software for the railway industry.

Wabtec reported revenues of $2.50 billion, up 13.8% year on year, surpassing analysts' expectations by 4.4%. It was an exceptional quarter for the company, with an impressive beat of analysts' organic revenue estimates.

The stock is up 7% since the results and currently trades at $158.89.

Read our full, actionable report on Wabtec here, it's free.

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