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Stifel Nicolaus increased its price target from $215 to $225 while keeping a buy rating. This follows a quarterly report where the company managed to expand its profit margins despite a generally sluggish environment for moving goods. The firm is encouraged by the company's ability to take market share from competitors. By using more automation to handle shipments, the business is becoming more efficient, which should allow it to earn more from every dollar of revenue as the trucking industry eventually recovers.
Source: Stifel Nicolaus
The company reported quarterly earnings of $1.61 per share, topping the $1.53 analysts expected. Revenue reached about 4.9 billion dollars, also coming in ahead of forecasts. These results are particularly notable because they happened while the broader trucking market remains in a slump, with fewer total shipments moving across the industry.
The business is successfully taking market share, with its shipping volumes growing about 1.5 percent while a key industry index fell over 3 percent. Management is using its Lean AI strategy to automate more of the work required to match shippers with trucks. This is helping the company keep its costs down and protect its profit per shipment even as the prices it pays for trucking services fluctuate. If the company can keep these efficiency gains, it will be in a much stronger position when the freight market eventually picks back up.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Management has a perfect record of beating expectations over the last two years, usually by a double-digit margin, which shows they have a very firm handle on their costs.
| Expectation | |
|---|---|
| EPS | $1.65 |
| Revenue | $4.85B |
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