Q: How serious is the transport downturn? What do you see happening to TFII?
5i Research Answer:
JBHT reported $1.22 EPS vs expectations of $1.50; revenue was $2.9B vs $3.1B expected. The main issue was a 9% decline in gross revenue per load and 22% fewer loads in its freight brokerage business. The company said the environment is 'persistently challenging and for longer than we had predicted'. TFII may see some similar weakness, but its geographic locations and customers are not the same. But this, combined with some signs of consumer pressure, may result in some short term weakness.