Shares of TFI International experienced a decline in early trading on Tuesday after the company released its third quarter financial results. The transport and logistics company reported lower profit and revenue due to weaker end-market demand.
At 9:50 a.m. ET, shares were trading 3.3% lower at 154.50 Canadian dollars ($112.85).
Revenue Falls 15%, Misses Expectations
TFI International's total revenue dropped 15% to $1.91 billion, falling short of analysts' expectations of $1.88 billion according to FactSet. The company attributed this decline to contractions in three segments compared to the prior-year period. Package and Courier experienced a 12% decline, Less-Than-Truckload dropped by 15%, and Truckload saw a significant decrease of 25%.
Net Profit Takes a Hit
Net profit for TFI International fell to $133.3 million, or $1.54 a share, down from $245.2 million or $2.72 a share in the same period last year. The company attributed this decline to reduced freight volumes and one-off costs.
Adjusted Earnings Per Share Below Estimates
TFI International reported adjusted earnings per share of $1.54, after excluding one-time items. This figure fell short of analysts' expectations of $1.73 as polled by FactSet.
Outlook and Analysts' View
"TFI International's results support our view that freight markets are showing signs of bottoming, although we remain cautious due to near-term uncertainty," stated Konark Gupta in a report for Scotiabank.
To summarize, TFI International's weaker-than-expected Q3 results reflect a decline in end-market demand and contraction in key segments, resulting in lower profit and revenue. However, analysts remain cautiously optimistic about the company's outlook.