Why Trinity Industries' Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of industrial equipment maker Trinity Industries (NYS: TRN) rose 18% today after releasing a strong earnings report.

So what: Revenue grew 45% from a year ago to $1.03 billion -- ahead of expectations -- and net income more than doubled to $67.5 million. That translated to earnings per share of $0.84, well ahead of the $0.73 analysts expected.

Now what: Management also said that it expected full-year earnings per share to be between $2.95 and $3.10, nearly doubling the $1.65 the company earned last year. That puts the stock at a 2012 P/E ratio of about nine; it's at the low end of estimates, and a great value for a growing company. I think shares can continue to move higher and the bump we saw today is just the start.

Interested in more info on Trinity Industries? Add it to your watchlist byclicking here.

The article Why Trinity Industries' Shares Popped originally appeared on Fool.com.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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