Latest news with #TrinityRail
Yahoo
30-05-2025
- Business
- Yahoo
1 Small-Cap Stock to Consider Right Now and 2 to Turn Down
Investors looking for hidden gems should keep an eye on small-cap stocks because they're frequently overlooked by Wall Street. Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets. These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. That said, here is one small-cap stock that could be the next big thing and two that may have trouble. Market Cap: $2.90 billion Founded in Virginia in 1932, Advance Auto Parts (NYSE:AAP) is an auto parts and accessories retailer that sells everything from carburetors to motor oil to car floor mats. Why Should You Sell AAP? Disappointing same-store sales over the past two years show customers aren't responding well to its product selection and store experience Inability to adjust its cost structure while its revenue declined over the last year led to a 10.4 percentage point drop in the company's operating margin Short cash runway increases the probability of a capital raise that dilutes existing shareholders Advance Auto Parts is trading at $48.28 per share, or 22.6x forward P/E. Dive into our free research report to see why there are better opportunities than AAP. Market Cap: $2.10 billion Operating under the trade name TrinityRail, Trinity (NYSE:TRN) is a provider of railcar products and services in North America. Why Is TRN Not Exciting? Customers postponed purchases of its products and services this cycle as its revenue declined by 1.1% annually over the last five years Negative free cash flow raises questions about the return timeline for its investments 8× net-debt-to-EBITDA ratio shows it's overleveraged and increases the probability of shareholder dilution if things turn unexpectedly At $25.74 per share, Trinity trades at 3.9x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including TRN in your portfolio, it's free. Market Cap: $8.85 billion Started in 1992 by two brothers as a single pushcart, Dutch Bros (NYSE:BROS) is a dynamic coffee chain that's captured the hearts of coffee enthusiasts across the United States. Why Is BROS on Our Radar? Fast expansion of new restaurants to reach markets with few or no locations is justified by its same-store sales growth Same-store sales growth over the past two years shows it's successfully drawing diners into its restaurants Expected revenue growth of 23% for the next year suggests its market share will rise Dutch Bros's stock price of $69.55 implies a valuation ratio of 108.3x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-05-2025
- Business
- Yahoo
Trinity (NYSE:TRN) Misses Q1 Sales Targets
Railcar products and services provider Trinity (NYSE:TRN) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 27.7% year on year to $585.4 million. Its GAAP profit of $0.26 per share was 18.8% below analysts' consensus estimates. Is now the time to buy Trinity? Find out in our full research report. Revenue: $585.4 million vs analyst estimates of $619.9 million (27.7% year-on-year decline, 5.6% miss) EPS (GAAP): $0.26 vs analyst expectations of $0.32 (18.8% miss) Adjusted EBITDA: $179.5 million vs analyst estimates of $182 million (30.7% margin, 1.4% miss) EPS (GAAP) guidance for the full year is $1.50 at the midpoint, beating analyst estimates by 7.1% Operating Margin: 17%, up from 13.9% in the same quarter last year Free Cash Flow was -$43.7 million compared to -$99.9 million in the same quarter last year Market Capitalization: $2.05 billion 'Trinity's first quarter results reflect the strength and resilience of our platform,' said Trinity's Chief Executive Officer and President, Jean Savage. Operating under the trade name TrinityRail, Trinity (NYSE:TRN) is a provider of railcar products and services in North America. A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Trinity's demand was weak and its revenue declined by 1.1% per year. This wasn't a great result and suggests it's a lower quality business. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Trinity's annualized revenue growth of 15.3% over the last two years is above its five-year trend, suggesting its demand recently accelerated. This quarter, Trinity missed Wall Street's estimates and reported a rather uninspiring 27.7% year-on-year revenue decline, generating $585.4 million of revenue. We also like to judge companies based on their projected revenue growth, but not enough Wall Street analysts cover the company for it to have reliable consensus estimates. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Trinity has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 12.2%. This result was particularly impressive because of its low gross margin, which is mostly a factor of what it sells and takes huge shifts to move meaningfully. Companies have more control over their operating margins, and it's a show of well-managed operations if they're high when gross margins are low. Looking at the trend in its profitability, Trinity's operating margin might fluctuated slightly but has generally stayed the same over the last five years, highlighting the consistency of its expense base. This quarter, Trinity generated an operating profit margin of 17%, up 3.2 percentage points year on year. Since its gross margin expanded more than its operating margin, we can infer that leverage on its cost of sales was the primary driver behind the recently higher efficiency. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Sadly for Trinity, its EPS declined by 5.7% annually over the last five years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. Trinity's two-year annual EPS growth of 40.6% was fantastic and topped its 15.3% two-year revenue growth. In Q1, Trinity reported EPS at $0.26, down from $0.33 in the same quarter last year. This print missed analysts' estimates. We also like to analyze expected EPS growth based on Wall Street analysts' consensus projections, but there is insufficient data. We were impressed by Trinity's optimistic full-year EPS guidance, which blew past analysts' expectations. On the other hand, its revenue missed significantly and its EPS fell short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 2.4% to $24.50 immediately following the results. Trinity didn't show it's best hand this quarter, but does that create an opportunity to buy the stock right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
02-04-2025
- Business
- Yahoo
Q1 ends with thousands more freight layoffs
Freight-related layoffs across North America continue to mount, with companies citing economic uncertainty, tariffs, declining demand and rising production costs as reasons for the job cuts. There have been 5,608 job cuts over the past several weeks, according to media reports and Worker Adjustment and Retraining Notification (WARN) Act notices. Since Jan. 1, almost 23,000 freight-related job cuts have been announced, impacting workers in autos, food distribution, manufacturing, transportation and logistics. Chewy Inc., an online pet supply retailer, plans to cut 674 jobs at its fulfillment center in Dallas, starting May company did not specify a reason for the layoffs in state filings. It opened a 663,000-square-foot fulfillment center in Dallas in 2017. Chewy is dually headquartered in Plantation, Florida, and Boston. The company has over 18,000 employees. In addition to Dallas, Chewy has fulfillment centers in Phoenix; Louisville, Kentucky; and Pittston, Pennsylvania. Online meal kit provider HelloFresh announced it is closing a distribution center in Grand Prairie, Texas, and eliminating 273 agency ManpowerGroup US Inc., a contractor for HelloFresh, announced earlier this year it was closing a distribution facility March 28 in Irving, Texas, and laying off 173 workers. Berlin-based HelloFresh has seen reduced customer demand for its products over the past year. HelloFresh operates in 16 countries and has over 21,000 employees. ManpowerGroup US Inc. recently announced it was closing three distribution facilities in Illinois that it operated for Factor, an online meal kit provider and subsidiary of HelloFresh. The manufacturing industry in the U.S., Canada and Mexico saw widespread layoffs including auto parts suppliers, farm equipment and railcar manufacturers, and a semiconductor chip maker. Milgard Manufacturing announced it was closing its window manufacturing plant in Ventura, California, and laying off 397 workers. Officials for Milgard told the Ventura County Star they are shifting production from the California plant to a facility in Phoenix. Tacoma, Washington-based Milgard Manufacturing has 1,400 employees and facilities in Sacramento and Temecula, California, and Prescott Valley, Arizona. Trinity Rail has laid off about 300 workers from a railcar factory in Sabinas, Mexico, according to media outlets in Rail told Mexican authorities it will temporarily lay off 15% of its Sabinas workforce while the company adjusts to slower demand in the market. Trinity Rail, based in Dallas, is part of Trinity Industries, a provider of rail transportation products and services in North America. In addition to its factory in Sabinas, Trinity Rail operates a factory in Monclova, Mexico. Sabinas is about 79 miles from Eagle Pass, Texas, the primary border crossing Trinity uses for railcar deliveries from its manufacturing facilities in Mexico, according to a news release. Winnipeg, Canada-based Eascan Automation Inc. recently laid off about 23 employees, as demand for its products is slowing amid uncertainty about U.S. tariffs, company officials said. Jason Andres, general manager of Eascan Automation Inc., said there has been a slowdown that began around the time Donald Trump was reelected president. The company, which provides custom-built machines to manufacturers, has lost $3 million to $4 million in orders, Andres said. 'A lot of companies are saying, 'OK, we don't need a robot this year. We can wait another year,'' Andres told CBC. The post Q1 ends with thousands more freight layoffs appeared first on FreightWaves.
Yahoo
05-02-2025
- Business
- Yahoo
What Trump's tariffs could mean for Florida
When President Donald Trump's administration announced it would impose 25% tariffs on Canada and Mexico, the world reacted. Florida-based businesses, from those that import or export goods at Port Tampa Bay to builders in need of construction materials for ongoing real estate projects, braced for market impacts. On Monday, Trump put a month-long pause on North American tariffs, while 10% tariffs on Chinese goods went into effect. The pause gives Florida-based companies more time to speculate and strategize before being pulled into a potential trade war. The Tampa Steel Conference brought steel leaders from around the world to Water Street this week. Speakers ripped up their notecards as the tariff situation changed by the hour. Several conference sessions centered around preparing for 'Trump 2.0... when a single post on Truth Social could end up altering trade policy.' 'Keep the faith. Everything's going to be okay,' said Michael Shin, chief supply chain officer for Trinity Rail, a Dallas-based company. Wry laughter broke out among audience members — many of whom have seen tariffs play out before. During Trump's first term, steel and aluminum were the products most hammered by tariffs, which increased domestic steel manufacturing by 5% while more than tripling prices for some products, per a federal report. Around 350,000 tons of steel came through Port Tampa Bay in 2024, up more than half from the previous year. This time around, tariffs could affect a broader range of products from Canada, Mexico and China — from produce and construction materials to cars and gasoline. Here's how this round of tariffs could affect Floridians' pocketbooks. Michael Coon, an associate professor of economics at the University of Tampa, said one of the biggest misconceptions people have is that tariffs make it more costly for certain countries to send goods to the U.S. In reality, it's a tax on American consumers and companies. 'If we buy an iPhone or a laptop, the people making the iPhones and laptops are charging the same price to everybody in the world. We just have to pay to bring it into the country,' Coon said. Many of the local companies who may have to pay higher tariffs on imported goods are at Port Tampa Bay, which processes more cargo tonnage than other Florida ports. In 2021, more than a third of Tampa's cargo — 11 million tons — came from or went to foreign countries. Canada ships the most goods into Tampa's port, while Mexico is the third-most common destination for exports. The port doesn't directly pay for import tariffs, said spokesperson Lisa Wolf-Chason. But it does collect wharfage fees when unloading arriving cargo. The port could lose some revenue from those fees if tenants import fewer shiploads. Some of the top products moving through Port Tampa Bay are fuel and limestone, a construction material and fertilizer ingredient. Tampa's port supplies fuel to almost half of Florida's population, Wolf-Chason said. Gas prices could rise in northern states that depend on Canadian crude oil, said Patrick De Haan, a lead analyst at GasBuddy, a fuel tracking site. Port Tampa Bay obtains most of its fuel from refineries in Texas. That domestic supply chain wouldn't be impacted by tariffs, protecting Floridians from major price increases, De Haan said. But consumers should look out for seasonal price increases, he said. Gas prices typically peak in April, as production methods change from winter to summer and more Americans hit the road during warmer months. Floridians may not as easily avoid increases in car prices. Almost all U.S. car manufacturers will be impacted by the tariffs, according to S&P Global Mobility, an automotive industry publication. Most automakers import between 20% and 60% of cars from Canada and Mexico. They'll likely pass on most of those increased production costs — around $6,250 on average — to consumers nationwide, per S&P Global. Coon said grocery stores will likely be one of the first places for prices to rise since the U.S. imports much of its agricultural products and alcohol from Mexico. The construction industry is also bracing for possible effects. 'More than 70% of the imports of two essential materials that home builders rely on — softwood lumber and gypsum (used for drywall) — come from Canada and Mexico, respectively,' said Carl Harris, chairman of the National Association of Homebuilders, in a statement. There is already a 14.5% tariff on Canadian lumber. Willy Nunn, president and CEO of local homebuilder Homes by WestBay said he is most concerned about companies panic-buying to get ahead of potential tariffs. 'That could lead to shortages of certain materials,' he said. Increased demand could cause prices to spike even without a tariff. It's possible that other countries might impose retaliatory tariffs against the U.S. These can often be used to target specific industries. For instance, the last time President Trump was in office, the European Union imposed a 25% tariff on American whiskey. 'Imagine if there was a retaliatory tariff on something like citrus,' Coon said. 'That could have a disproportionate affect on Florida.' Retaliatory tariffs could impact another major Florida exporting industry: aircraft and aerospace products. The state generated $10.6 billion in exports in 2023, according to the Greater Fort Lauderdale Alliance. In a statement, the Aerospace Industries Association expressed hope that the Trump administration would help protect the industry. Most Florida industry leaders are waiting to see what comes in 30 days. It could be months before the tariffs' economic impacts are felt.
