Hey Global Investor, here’s what you need to know before the US markets open.
Market Snapshot 📈
S&P 500 (Monday Close) 3,577.59 +20.05 (0.56%)
NASDAQ (Monday Close) 11,880.63 +25.66 (0.22%)
FTSE 100 (5 PM IST)6410.67 +76.83 (1.21%)
NIFTY 50 (Today’s Close) 13,055.15 +128.70 (1.00%)
USDINR (5 PM IST) 74.02 (1 Year +3.42%)
What Is Triton Again?
6M shipping containers. 28% share of the leasing industry. Presence in 281 ports across 60 countries. That’s Triton.
Background: Intermodal containers are the big standardized steel boxes that carry everything from commodities to machinery to toys. They’re transported on ships, then freight trains, and finally trucks before being unloaded at their final destinations. Triton International, which leases out its fleet of 6M containers to all major shipping lines globally, is the largest of such leasers.
2020 was expected to be a challenging year for shipping lines, with trade volumes predicted to fall as much as 20%. Sure enough, between February to April, Triton’s business tumbled, with the world locking down. Trade volumes have picked up since, surpassing Y-o-Y demand. Consequently, 2020 might just turn out to be one of the firm’s best yet.
What is Happening? With lifestyle-as-usual taking a backseat due to restrictions on travel, dining out, and other “experiences,” people started improving their homes and purchasing physical “things.” As they say, things come in containers. Services and experiences don’t.
Many shipping lines pulled back on acquiring containers in 2020, expecting demand to nosedive. But demand shot up instead and the shipping firms were caught on the wrong foot. Suddenly, containers became very valuable. Triton to the rescue.
Triton’s global presence allows clients the logistical flexibility to drop off and pick up containers at different ports. These containers are leased on multi-year terms; this year’s high rates and tight capacity will have a long-tail revenue effect.
Covid has turned up some unexpected outcomes in its wake. Triton turned out to be a big beneficiary in an attractive niche.
Last week, Triton reported a net income of $45.9M for Q3 2020 vs. $85.9M in Q3 2019. Adjusted EPS came in at $1.14, topping the forecast of $1.06 per share.
Market Reaction: On Monday, Triton closed at $46.07, up 6.77%.
Company Snapshot 📈
TRTN $46.07 +2.92 (+6.77%)
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Later Today 🕒
- 7.30 PM IST: Chicago Fed national activity index
- Before Market Open: Analog Devices Inc Earnings (ADI)
- Before Market Open: Tiffany & Co Earnings (TIF)
- After Market Close: 21Vianet Group Inc Earnings (VNET)
Fun Fact of The Day 🌞
The hottest planet in our solar system is 450°C