Triton (TRTN) To Post Q4 Earnings: Disappointment In Store?
Zacks Investment Research | Feb 07, 2019 09:39PM ET
Triton International Limited (NYSE:TRTN) is slated to release fourth-quarter 2018 results on Feb 14, before market opens.
In the third quarter, the company delivered impressive results, with earnings and revenues beating the Zacks Consensus Estimate. Also, the top line improved year over year on the back of strong operating lease revenues.
However, the situation is anything but encouraging ahead of its fourth-quarter release. The Zacks Consensus Estimate for fourth-quarter earnings has been revised 4.2% downward in the past 90 days, indicating negativity surrounding the stock.
Moreover, shares of the company have declined 6.7% in the October-December period.
Factors Likely at Play
As in the past few quarters, finance lease revenues are expected to decline in the fourth quarter as well. Decline in finance lease revenues are expected to dent top-line growth in the to-be-reported quarter.
Furthermore, the fourth quarter is a sluggish season for dry containers. Consequently, market metrics such as utilization, box prices, average lease rate etc. are expected to decline slightly. This might have an adverse impact on the company’s top-line results in the to-be-reported quarter.
Moreover, trade war tensions between the United States and China might hurt quarterly results by impacting container trading volumes adversely. Brexit-related uncertainty may also dent Triton’s results in the quarter under discussion.
Additionally, the company’s high-debt levels raise concerns. Triton is a highly leveraged company, by the fact that the ratio of its long-term debt-to-equity (expressed as a percentage) compares unfavorably with the Original post
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