Q: Your thoughts on earnings. Tough trucking conditions but Tfii seemed to do reasonably ok but missed estimates. How will market view things? Would you top up position now or wait?
5i Research Answer:
EPS was $1.24 vs $1.33 the prior year, and short of estimates ($1.36). Revenue was $1.87B, up 1.1% and matching estimates. Pagakage and courier revenue fell 8.3%; Truckload -4%; Logistics +24%, LTL -1.5%. EBITDA was $268.4M, up 1.6% but short of estimates ($278.5M). US LTL was strong, but TFII admitted it was a 'challenging environment'. Still, it was good that revenues could in fact still rise as there was only one acquisition than closed in the quarter. The stock will likely decline a bit, but anticipation following peer results will likely mean a muted reaction to the quarter. We think it is still buyable, but it does have economic sensitivity so we think buyers can be selective and wait for opportunities.