TFII posted weaker-than-anticipated second-quarter results. The total revenue came in at US$1.79 billion, missing the forecast of $1.91 billion. Adjusted EBITDA of $300 million came in lower than the street consensus of $308 million and adjusted diluted earnings per share of $1.59 missed expectations of $1.71. Management said lower income was due to overall lower revenues and volumes associated with freight. CEO noted a difficult freight market and reduced volumes across the industry. The company has completed seven acquisitions so far this year and management sees more prudent capital allocation. The market expects a downward revision in guidance. Last quarter, management guided adjusted EPS of $7.00-7.25 for 2023. We will be watching for the updated guidance. The dividend was raised 30% but this was previously disclosed. The stock may be up as investors digest the bankruptcy of a competitor (Yellow).
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