Stifel Nicolaus Carrier Results

  • Stifel Nicolaus Carrier Results

    LTL carriers experience deteriorating year-over-year gains in Q2

    - by Tom Sanderson

    Stifel Nicolaus (www.stifel.com) reported small year-over-year yield growth and but deteriorating operating ratios for publicly traded less than truckload (LTL) carriers in Q2. Decelerating yield gains may indicate that the segment has reached a plateau. The Stifel Industry Sector Snapshot for the LTL sector indicated year-over-year revenue per hundredweight (yield) increasing at an extremely low rate. Year-over-year yields for the LTL carriers have risen for thirteen straight quarters after six quarters of declining yields from Q4-2008 through Q1-2010. The pace of growth has greatly decelerated, raising concern that the sector may struggle to continue its growth streak next quarter. Year-over-year operating ratios deteriorated slightly to 95.3% from 94.7%, but improved relative to Q1 2013 and are still slightly above pre-recession levels. Weight per shipment decreased 0.1% during the quarter, but increased sequentially over Q1. Composite net income, excluding YRCW, was relatively flat with its year-ago figure.

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  • Stifel Nicolaus Carrier Results

    Stifel Nicolaus reports modest TL profit growth on decreasing yield gains

    - by Tom Sanderson

    Stifel Nicolaus (www.stifel.com) reported the thirteenth consecutive quarter of positive year-over-year yield and earnings growth for publicly traded truckload carriers in Q2. The Stifel Industry Sector Snapshot for the truckload sector showed a year-over-year gain of 1.3% in revenue per loaded mile excluding fuel surcharge. This growth pace represents a slowdown from the 2.3% gain in Q1, and also lower than the growth experienced in Q2-2012. It was a tough pricing market for the TL carriers from Q4 2006 through Q2 2010. Operating ratios improved sequentially from Q1, but deteriorated slightly from Q2-2012. Truck utilization improved 1.8% on a year-over-year basis and also rose sequentially over Q1. The net effect was a modest 4.2% growth in EPS over Q2-2012, but this was a substantial improvement over Q1’s EPS gain.

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    Graphs reproduced with permission from Stifel Nicolaus. For more information contact: JGLarkin@Stifel.com.

  • Stifel Nicolaus Carrier Results

    I could not have said it better myself!

    - by Tom Sanderson

    John Larkin’s concluding slide in yesterday’s webinar with ZONAR is displayed below. You can view the entire presentation at the ZONAR website.  John’s insights on the state of the industry and the economy are always illuminating, but I particularly enjoyed his conclusions in this presentation.

    Stifel conclusion

  • Stifel Nicolaus Carrier Results

    Stifel Nicolaus reports strong TL carrier profit growth on modest yield gains

    - by Tom Sanderson

    Stifel Nicolaus (www.stifel.com) reported improved year-over-year yield and financial results for publicly traded truckload carriers in Q4. The Stifel industry sector Snapshot for the TL sector showed a year-over-year gain of 2.3% in revenue per loaded mile excluding fuel surcharge. That makes eleven straight quarters of increases and a stronger gain than in Q3 2012. It was a tough pricing market for the TL carriers from Q4 2006 through Q2 2010. Operating ratios improved sequentially from Q3 2012 but were flat with Q4 2011.  Truck utilization was up 0.8% from Q4 of 2011 and also up slightly from Q3 2012. The net effect was a 23% growth in EPS over Q4 2011, and also an increase over Q3 2012.

    TL Q4 2012

    Graph reproduced with permission from Stifel Nicolaus. For more information contact: JGLarkin@Stifel.com.

  • Stifel Nicolaus Carrier Results

    LTL carriers show year-over-year gains, but the pace of improvement is slowing

    - by Tom Sanderson

    Stifel Nicolaus (www.stifel.com) reported year-over-year yield growth and operating ratio improvements for publicly traded less than truckload (LTL) carriers in Q3, but believes they may be reaching a plateau. The Stifel industry sector Snapshot for the LTL sector showed year-over-year revenue per hundredweight (yield) including fuel surcharge increasing by less than 5%. That makes 10 straight quarters of rising year-over-year yields for the LTL carriers following 6 straight quarters of declining yields. The pace of increases is clearly decelerating. Year-over-year operating ratios continued to improve but remain in the mid 90’s, just slightly above pre-recession levels. Weight per shipment has leveled off but was up slightly from Q3 2011 as parcel carriers win smaller shipments and TL carriers only reluctantly accept multi-stop TL shipments. Composite net income, excluding YRCW, is in the range of pre-recession levels.

    LTL Snapshot Q3 2012

    Graph reproduced with permission from Stifel Nicolaus. For more information contact: JGLarkin@Stifel.com.

  • Stifel Nicolaus Carrier Results

    TL carriers show year-over-year gains, but deterioration from Q2

    - by Tom Sanderson

    Stifel Nicolaus (www.stifel.com) reported improved year-over-year yield and financial results for publicly traded truckload carriers in Q3. The Stifel industry sector Snapshot for the TL sector showed a small year-over-year gain of 1.4% in revenue per loaded mile excluding fuel surcharge. That makes ten straight quarters of increases but the smallest year-over-year growth since the streak started. It was a tough pricing market for the TL carriers from Q4 2006 through Q2 2010. Operating ratios deteriorated from Q2 of this year but were better than Q3 2011. Truck utilization was up 0.6% from Q3 of 2011 but down slightly from Q2 of this year. The net effect was a strong growth in EPS over Q3 2011, but again a deterioration from Q2 2012.

    TL Snapshot Q3 2012

    Graph reproduced with permission from Stifel Nicolaus. For more information contact: JGLarkin@Stifel.com.

  • Stifel Nicolaus Carrier Results

    Stifel Nicolaus reports modest yield gains and stronger profits for LTL carriers

    - by Tom Sanderson

    Stifel Nicolaus (www.stifel.com) reported solid year-over-year yield growth and operating ratio improvements for publicly traded less than truckload (LTL) carriers in Q2. The Stifel industry sector Snapshot for the LTL sector showed year-over-year revenue per hundredweight (yield) including fuel surcharge increasing by less than 5%. That makes 9 straight quarters of rising year-over-year yields for the LTL carriers following 6 straight quarters of declining yields. Operating ratios continued to improve but remain in the mid 90’s. LTL carriers have have not yet achieved operating ratios as low as they had achieved before the recession. Weight per shipment continues to slowly climb as parcel carriers win smaller shipments and TL carriers only reluctantly accept multi-stop TL shipments. Composite net income, excluding YRCW, is in the range of pre-recession levels.

    Stifel LTL q2 2012

    Graph reproduced with permission from Stifel Nicolaus. For more information contact: JGLarkin@Stifel.com.

  • Stifel Nicolaus Carrier Results

    Stifel Nicolaus reports slowing of TL rate hikes in Q2

    - by Tom Sanderson

    Stifel Nicolaus (www.stifel.com) reported mixed yield and financial results for publicly traded truckload carriers in Q2. The Stifel industry sector Snapshot for the TL sector showed a small year-over-year gain of 2.0% in revenue per loaded mile excluding fuel surcharge. That makes nine straight quarters of increases but the gains are shrinking. It was a tough pricing market for the TL carriers from Q4 2006 through Q2 2010, but that has changed. Operating ratios improved over Q1 of this year but were off slightly from Q2 2011. Truck utilization was down 1.2% from Q2 of 2012 but increased over Q1 of this year. The net effect was a strong 16% growth in EPS over Q2 2011.

    Stifel TL q2 12

    Graph reproduced with permission from Stifel Nicolaus. For more information contact: JGLarkin@Stifel.com.

  • Stifel Nicolaus Carrier Results

    Stifel Nicolaus reports strong Q1 for TL carriers

    - by Tom Sanderson

    Stifel Nicolaus (www.stifel.com) reported yield and financial performance gains for publicly traded truckload carriers in Q1. The Stifel industry sector Snapshot for the TL sector showed a year-over-year gain of 3.8% in revenue per loaded mile excluding fuel surcharge. That makes eight straight quarters of increases. The rate impact of the heavy bid activity of 2009 has faded and contract rates are rising. It was a pretty tough pricing market for the TL carriers from Q4 2006 through Q2 2010, but that has changed. Operating ratios improved over Q1 2011 but were slightly worse than Q4 2011. Truck utilization was down 0.3% from Q1of 2011 and down slightly from Q4. A strong growth in yield led to a doubling of EPS over Q1 2011.

    Stifel Q1 2012 TL

    Graph reproduced with permission from Stifel Nicolaus. For more information contact: JGLarkin@Stifel.com.

  • Stifel Nicolaus Carrier Results

    TL carriers finish 2011 with financial gains

    - by Tom Sanderson

    Stifel Nicolaus (www.stifel.com) reported yield and financial performance gains for publicly traded truckload carriers in Q4. The Stifel industry sector Snapshot for the TL sector showed a year-over-year gain of 5.5% in revenue per loaded mile excluding fuel surcharge. That makes seven straight quarters of increases. The rate impact of the heavy bid activity of 2009 has faded and contract rates are rising. It was a pretty tough pricing market for the TL carriers from Q4 2006 through Q2 2010, but that has changed. Operating ratios improved over Q4 2010 and also sequentially from Q3 2011. Truck utilization was down 3% from Q4 of 2010 but up slightly from Q3. A stronger growth in yield led to a double-digit percentage gain in EPS over Q4 2010.

    Stifel Tl q4 2011

    Graph reproduced with permission from Stifel Nicolaus. For more information contact: JGLarkin@Stifel.com.

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