Q: What are your thoughts about TTNM after their recent purchase of the assets of Crane Transport?
5i Research Answer:
Size is an asset in this business, so it makes sense strategically. The deal will add capacity and add to its customer base in the US. It will add four terminals and a freight management solution for new and existing customers. It is a fairly sizeable deal considering the size of TTNM, so does add execution and debt risks. TTNM also lowered guidance, citing lower fuel surcharges, lower pricing and volume. It now expects revenue of $450M+, down $50M from prior guidance. The stock has done well and is priced well. EPS will drop about 30% this year, however, based on consensus.