Marten Transport Q3 profit rises on higher truckload pricing
Overview
US temperature-sensitive truckload carrier's Q3 revenue rose 1.3% but missed analyst expectations
Net income for Q3 increased 31% to $2.9 mln, diluted EPS was $0.04
Earnings impacted by higher fuel and health insurance costs
Outlook
Company says truckload freight market has tightened due to enforcement removing driver capacity
Company reports securing higher pricing from customers in early stages of freight market upcycle
Company focused on mitigating impact of rising diesel fuel prices through expense management
Result Drivers
HIGHER PRICING - Co said it secured higher pricing for premium services, with truckload rates per mile up 14.1% year-on-year
TIGHTER FREIGHT MARKET - Co said reduced noncompliant driver capacity tightened the freight market, supporting higher pricing and improved freight quality
HIGHER COSTS - Co said unusually high net fuel and health insurance costs reduced earnings
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $223.23 mln | $230.03 mln (3 Analysts) |
Q3 EPS | $0.04 | ||
Q3 Net Income | $2.91 mln | ||
Q3 EBIT | $3.06 mln | ||
Q3 Operating Expenses | $220.17 mln | ||
Q3 Pretax Profit | $3.95 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the ground freight & logistics peer group is "buy"
Wall Street's median 12-month price target for Marten Transport, Ltd. is $17.00, about 34.3% above its October 21 closing price of $12.66
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 40 three months ago
Reuters Recommended Reads
Oct 22 - US railroads pull ahead as high fuel costs hit truckers harder
Oct 20 - Truckload carrier Heartland Express' Q3 operating revenue falls more than expected
Oct 21 - Knight-Swift Q3 revenue, EPS beat analyst expectations on pricing gains
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)