Research Library
Below is our research library, listed in reverse chronological order. Please use the search box to look for research on a specific company or topic, or use the Calendar, Archives, or Sector links at left to browse for research from a specific time period or sector. If you are a Wolfe Trahan client and can not access any of the links in our library, please contact ITSupport@WolfeResearch.com to request our PDF decryption plug-in.
CGI 1Q Earnings: Solid Quarter as Acquisition Strategy is Paying Off
CGI reported F3Q EPS of $0.25, well above Cons. of $0.20 and up more than 3x from $0.08 ongoing a year ago. For the first time in six quarters, CGI’s loaded miles inflected positive, up 5.1% y/y, helped by several recent acquisitions that helped boost the company’s average seated tractor count. While CGI’s acquisition strategy is yielding higher-end growth currently among the TLs, we retain our Peer Perform rating following strong outperformance YTD and into signs of more material driver pressures and yield deceleration vs. the other TLs
CVTI 1Q Earnings: Smaller than Expected 1Q Loss and Better Cash Flow
CVTI reported less of an EPS loss and its free cash flow turned positive into materially fewer truck replacements and better than expected gains on sale. We are raising our C12 EPS estimate by $0.10 to account for the lower than expected EPS loss in 1Q, but our C13 EPS estimate is unchanged.While improved cash flow is a good sign, we estimate CVTI still has little cushion on its covenants and its operating performance remains disappointing. We continue to prefer the larger public TL carriers with more consistent operating performance and less balance sheet risk.
UACL 1Q Earnings: Upside 1Q Driven by Better Margins, But Signs of Slower Volumes in March and April
UACL beat 3Q Consensus expectations by 35%, missed 4Q estimates by 23% and has now beat 1Q estimates by 10%. Thus, its operating and financial performance remains very inconsistent and EPS visibility remains low in our opinion. Our sense from UACL management is that 2Q:12 is off to a sluggish start and that volume weakness which began in late March has persisted into April in its Truckload segment but that brokerage remains strong as does pricing overall.
KNX 1Q Earnings: Strong Quarter Against Easy Comp
We believe KNX reported the strongest 1Q results among the TL carriers within our coverage. Against admittedly easy comps, KNX showed solid improvement in all metrics. While margin and utilization comps get tougher ahead, we expect fleet growth to accelerate and pricing gains to continue. We also expect KNX to see high-end growth among the truckers the next couple of years.
RA 1Q Earnings: Raising Estimates and Target Price Yet Again After Strong 1Q Beat
RA reported adjusted 1Q EPS 50% above Cons. Despite its strong outperformance YTD, we reiterate our Outperform on RA which is executing on all cylinders, with evidence in 1Q of improving volume growth, continued solid yield trends, strong cost control and impressive non-freight revenue growth that is positive for margins and returns. RA also began to see signs of its massive deleveraging in 1Q, while its previously announced Wellsboro & Corning acquisition closed in early April and its Marquette Railroad acquisition is on track to close in May. RA also noted in its press release that its pipeline of additional acquisition opportunities is “promising.”
DAN: Upside Truck Margins Should Press Estimates Higher
DAN reported 1Q:12 EBITDA of $212M, 6% above our high-end $200M est and 11% above Cons $191M. DAN’s $0.44 of adj. EPS was above our $0.43 and Cons $0.41.
Research Library
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