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.
LUV: Solid results… but what is fair value for the stock?
EPS ex-items of $0.36 was in line with our estimate but $0.04 above consensus. The most important takeaways, in our view: demand trends into 3Q12 appear ok, and LUV is likely to remain disciplined on capacity growth in 2013 (likely no or minimal growth on a y/y basis). LUV’s aversion to fare increases makes pricing airfares difficult when LUV, still the largest airline in the U.S., is adding capacity.
UNP Initial Thoughts: 2Q Beat on Better Margins
UNP reported 2Q:12 EPS of $2.10/shr vs. Cons. of $1.96 and our $2.02 estimate. UNP did not highlight any one-time gains in the qtr. but Other expenses were lower than we expected by $30M or $0.04/shr which may reflect a casualty/safety accrual benefit. While rev. was light of our expectations and yields decelerated more than we expected, yields still remained at the high end of the group and cost control/margin improvement remained exceptional; we have an upward bias to numbers pending this morning’s call. UNP remains our favorite rail stock for its mix of pricing, productivity and long-term volume growth.
WERN 2Q Earnings: WERN Ekes Out In-Line Quarter
WERN reported in line with Cons. and $0.01 below our est. Rev., EBIT and EPS grew 1%, 9% and 11% y/y, each decelerated from 1Q and breaking WERN’s streak of 9 straight qtrs. We have reduced our C12-13 EPS estimates by 4% and 3% to $1.59 and $1.80 (now slightly below prior Cons.) to reflect weaker utilization. On the positive side, yield growth remains firm and we continue to see long-term market share potential for large TL carriers. While near-term TL sentiment remains weak given macro concerns, we remain bullish on the group and retain our Outperform rating on WERN.
Research Library
- Coverage List
- Consolidated Research Library
- Airfreight & Surface Transportation Library
- Portfolio Strategy Library
- Quantitative Analysis Library
- Accounting & Tax Policy Library
- Auto & Truck Manufacturing Library
- Airlines Library
- Conference Calls
- Interactive Doh! Models
- Ed Wolfe Bi-Weekly Freight Update