Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at 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 14 heavy transportation equipment stocks we track reported a satisfactory Q1. As a group, revenues missed analysts’ consensus estimates by 1.2%.
Luckily, heavy transportation equipment stocks have performed well with share prices up 21.3% on average since the latest earnings results.
Trinity (NYSE: TRN)
Operating under the trade name TrinityRail, Trinity (NYSE: TRN) is a provider of railcar products and services in North America.
Trinity reported revenues of $585.4 million, down 27.7% year on year. This print fell short of analysts’ expectations by 5.6%. Overall, it was a slower quarter for the company with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ EBITDA estimates.
“Trinity’s first quarter results reflect the strength and resilience of our platform,” said Trinity’s Chief Executive Officer and President, Jean Savage.
Trinity delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 7.1% since reporting and currently trades at $26.90.
Read our full report on Trinity here, it’s free.
Best Q1: Douglas Dynamics (NYSE: PLOW)
Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics (NYSE: PLOW) offers snow and ice equipment for the roads and sidewalks.
Douglas Dynamics reported revenues of $115.1 million, up 20.3% year on year, outperforming analysts’ expectations by 6.7%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Douglas Dynamics delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 19.9% since reporting. It currently trades at $29.29.
Is now the time to buy Douglas Dynamics? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Greenbrier (NYSE: GBX)
Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE: GBX) supplies the freight rail transportation industry with railcars and related services.
Greenbrier reported revenues of $762.1 million, down 11.7% year on year, falling short of analysts’ expectations by 15.2%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Greenbrier delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 3.5% since the results and currently trades at $46.30.
Read our full analysis of Greenbrier’s results here.
Shyft (NASDAQ: SHYF)
Notably receiving an order from FedEx for electric vehicles, Shyft (NASDAQ: SHYF) offers specialty vehicles and truck bodies for various industries.
Shyft reported revenues of $204.6 million, up 3.4% year on year. This result beat analysts’ expectations by 2.8%. It was an incredible quarter as it also recorded a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Shyft achieved the highest full-year guidance raise among its peers. The stock is up 73.3% since reporting and currently trades at $12.63.
Read our full, actionable report on Shyft here, it’s free.
REV Group (NYSE: REVG)
Offering the first full-electric North American fire truck, REV (NYSE: REVG) manufactures and sells specialty vehicles.
REV Group reported revenues of $629.1 million, up 2% year on year. This print topped analysts’ expectations by 5.4%. Overall, it was a stunning quarter as it also logged an impressive beat of analysts’ EBITDA estimates.
The stock is up 23% since reporting and currently trades at $45.78.
Read our full, actionable report on REV Group here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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