Marten Transport Q3 profit rises on higher truckload pricing

By Reuters News


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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