iShares Transportation Average
What Analysts Estimate for Major Truckload Carriers in 2018
A tax deduction for capital expenditures according to the new Tax Cuts and Jobs Act is a boon for the transportation industry.
Why Delta Air Lines’ Traffic Fell in August 2016
Delta Air Lines’ (DAL) total traffic fell due to a computer outage. For August 2016, Delta’s traffic fell by 2.8% as compared to the 0.5% capacity growth.
Why Union Pacific’s Intermodal Freight Revenues Could Disappoint in 2016
Union Pacific’s domestic intermodal includes North American operations. Intermodal freight generated 20% of the company’s revenues in 2014.
UPS: What Drove Its Supply Chain Growth in Q2 2018?
UPS’s Supply Chain and Freight segment reported revenues of $3.5 billion, up 16.1% from $3.0 billion in the second quarter of 2017.
J.B. Hunt: Analysts Have a Divided View
J.B. Hunt has a consensus 12-month target price of $133.80 per share, which implies a return potential of 10.1% over the next 52 weeks.
How Analysts View American Airlines ahead of Q1 Results
American Airlines (AAL), the fourth-largest US air carrier, is expected to report its first-quarter 2019 results on April 24.
Why Did Analysts Fall Out of Love with Southwest Airlines?
Out of the 18 analysts tracking Southwest Airlines (LUV), 11 analysts (61.1%) have a “buy” recommendation on the stock versus 71% analysts that had a “buy” recommendation on Southwest in 2Q16.
What Helped Alaska Air Group Drive its 2Q15 Earnings?
Adding newer destinations Alaska Air Group (ALK) added a number of new routes in the second quarter of 2015, such as: Boise to Reno Eugene to San Jose, California Los Angeles to Baltimore Los Angeles to Gunnison–Crested Butte Los Angeles to Monterey Los Angeles to San Jose, Costa Rica Portland to Austin Seattle to Charleston […]
Driver shortage will likely have a negative impact on J.B. Hunt
Today, one of the biggest challenges for the trucking industry is driver shortage. There aren’t enough experienced drivers. It’s expected to have a negative impact on JBHT.
Alaska Airlines Capacity Growth Is Faster than That of Its Peers
Alaska Air Group saw the highest surge in traffic demand and was the leader in capacity growth, with a 6.4% YoY increase in its capacity in July 2015.
How Does Wall Street View American Airlines?
Out of the total analysts surveyed by Bloomberg, 64.7% of analysts have a “buy” rating on American Airlines, ~35.3% of the analysts have a “hold” rating, and no analysts have a “sell” rating.
Why Delta’s unit cost increased in 3Q14
Delta’s operating expenses increased by 16%, on 7% higher revenue, to $10,343 million. Higher costs had a negative impact on Delta’s operating profits.
J.B. Hunt’s Dedicated Contract Services segment 4Q14 performance
J.B. Hunt’s DCS segment saw a strong 10% year-over-year revenue growth to $363 million for 4Q14, driven by rate increases and more active customer accounts.
Norfolk Southern’s Intermodal Volumes Improved in Week 11
Norfolk Southern’s (NSC) overall rail freight traffic inched up 0.3% YoY (year-over-year) in Week 11.
Airlines Must Balance Load Factors with Capacity Growth
Airlines’ aggressive capacity growth has had an adverse effect on utilization, which has resulted in declining utilizations for most players.
Turnover in Norfolk Southern’s Top Management in 2015
In 2015, Norfolk Southern Corporation (NSC) witnessed numerous changes in its executive management ranks due to either retirement or promotion.
Why Should Investors Anticipate CSX’s 2Q16 Earnings Preview?
Railroad stocks provide a good insight into the overall health of the economy. CSX Corporation will release its 2Q16 earnings on July 13.
Landstar’s 3Q14 performance
On a year-to-date basis, Landstar’s revenues stood at $2,321 million, an 18% year-over-year increase from 2013.
What Key Trends Can Shape UPS’s Future?
UPS’s performance is related to global growth, especially US economic growth. Logistics companies are a direct reflection of the country’s economic health.
Kansas City Southern Stock Rises on Upbeat Q1 Earnings
Kansas City Southern stock rose 3.4% in premarket trading on April 17 after it reported better-than-expected results for the first quarter.
More Analysts Have Turned Positive on Alaska Air Group
Alaska Air Group’s (ALK) consensus 12-month target price is $80.55, which indicates a 15.2% return potential on October 10, 2016.
What Has Caused the Correction in Transportation Stocks?
DJTI’s price-to-earnings ratio climbed from 15.7x at the start of 2013 to 20.2x at the end of 2014. This year, transportation stocks (IYT) have taken a hit, leading to multiple contractions.
Can Airline Capacity Utilization Improve Going Forward?
Airline capacity utilization is measured using the passenger load factor, which is calculated by dividing traffic numbers by capacity numbers.
American Airlines: What Could Affect Its Q1 Earnings
Analysts expect American Airlines to report an adjusted EPS of $0.51—down 32.4% on a YoY (year-over-year) basis.
Are 2016’s Rising Airfares Here to Stay?
Since airlines across the industry have been forecast to beat record profits achieved in 2015, consumers have expected a further fall in airfares.
Old Dominion Freight Line Beats Q2 2018 Estimates, Stock Plunges
Old Dominion Freight Line (ODFL) announced its second-quarter earnings today before the market opened. Here’s what you need to know.
United sees major improvement in 3Q14 fuel cost efficiency
United achieved significant fuel cost savings during 3Q14 in the form of lower purchase costs and improved fuel efficiency.
Getting a Read on the Railroad Industry
Railroads have seen a boost in intermodal traffic recently due to heightened international trade, continued investment in growing intermodal rail networks, and a shift from trucks to railways.
The must-know drivers of air cargo growth for US airlines
According to the IATA, global air freight volume has increased by 4.5%. Capacity, measured by available freight ton kilometers (or AFTK), increased by 3.5% year-over-year in August 2014.
What worries Charles Evans?
A slowing global economy is also a worrying factor for Charles Evans. Companies with an export focus will hire fewer people if there are fewer orders.
JetBlue Airways Raised Third-Quarter 2018 Guidance
Crude oil prices have been rising throughout 2018 due to supply concerns.
How Did BNSF’s Carloads Perform against Rival UNP’s?
BNSF Railway (BRK-B) operates in the Western US, competing with Union Pacific (UNP).
Why the CFNAI Has Historically Led Overall Growth
There are no truly reliable measures of future growth. That said, certain economic statistics have historically led overall growth.
Why Old Dominion Freight Line Commands a Valuation Premium
Old Dominion announced a rise of 2.0% LTL tons in January and 3.2% in February. During the same months, its LTL shipments per day rose by over 6%.
UPS’s Second-Largest Segment: International Package Segment
United Parcel Service’s international package segment includes small package operations in Europe, Asia-Pacific, Canada, Latin America, the Indian subcontinent, the Middle East, and Africa.
Why Did CSX’s Carloads Rise in the Week Ending July 2?
CSX (CSX) is a major operator in the Eastern US that competes with Norfolk Southern (NSC).
Most Airline Stocks Continue to Tumble in August
In 2015, most airline stocks have fallen, and the NYSE ARCA Airline Index (XAL), which is composed of the major US airline stocks, has also tumbled as much as 13.5% year-to-date.
Why it’s important for airlines to improve load factor
Load factor measures capacity utilization. It indicates the percentage of total capacity that an airline utilizes. Airlines are capital intensive. They have high fixed costs.
How CSX’s Carloads Compared with Industry Volumes in Week 6
In the sixth week of 2018 (ended February 10), CSX posted a 9% loss in carload traffic.
Assessing Canadian National Railway’s Week 38 Traffic Trends
In Week 38, Canadian National Railway (CNI) registered a 3.1% YoY (year-over-year) carload traffic gain.
How Did BNSF’s Intermodal Volumes Fare?
BNSF Railway’s (BRK-B) total intermodal traffic for the week ended July 2, 2016, was up 1.7%.
What Analysts Recommend for Major Airlines’ Stock
Analyst recommendations Among the seven major carriers, most analysts seem to favor Delta Air Lines (DAL). Delta Air Lines has a “buy” rating from 87.5% of analysts covering it. Next is Southwest Airlines (LUV), which has 70.6% of analysts recommending “buy” and 29.4% recommending “hold.” Alaska Airlines (ALK) has 69.2% of analysts recommending “buy” and […]
Union Pacific’s Carloads: Coal Pulls Down Overall Volumes
Union Pacific (UNP) competes with Berkshire Hathaway owned BNSF Railway (BRK-B) in the Western US.
Key growth trends in airline passenger traffic by region
Global passenger traffic has increased by 5.8% year-over-year during the first eight months of 2014. Europe (29.7%), Asia-Pacifc (29.2%), and North America (25%) comprise ~85% of global market share by passenger traffic.
How Did Norfolk Southern’s Carloads Compare to CSX’s?
Norfolk Southern (NSC) is a major freight rail carrier in the Eastern US.
Why Did FedEx Switch to Mark-to-Market Pension Accounting?
FedEx suffered a loss of $895.0 million in connection with the shift to new pension accounting in 2015.
A Look into UPS’s Domestic Package Segment
UPS’s Domestic Package segment provides an array of guaranteed ground and air package transportation services, depending on the customer’s need.
How KSU’s Week 24 Traffic Growth Compared with the Industry
In Week 24, the United States’ smallest Class I railroad, Kansas City Southern (KSU), registered a small gain of 0.2% in its carload traffic.
FedEx Tax Bill: CEO Challenges New York Times’ Claims
FedEx (FDX) CEO Frederick Smith slammed the New York Times for its story about FDX’s tax bill. In a statement, Smith challenged the publisher to a debate.
US Airlines Capacity Growth Outpaces Demand, Load Factor Drops
Decreasing load factors across the airline industry mean that airlines are not able to fill up their seats as fast as they are adding seats. This justifies investor fears of overcapacity.
Week 38: US Rail Traffic Growth Stood Out in North America
The Association of American Railroads published its weekly rail traffic data for 12 key North American railroad companies on September 26.
How Old Dominion Freight Line Dominates the Less-Than-Truckload Industry
Old Dominion Freight Line (ODFL) is the United States’ major provider of regional, interregional, and national LTL (less-than-truckload) services.
FedEx Delivers Strong Fourth-Quarter Earnings
FedEx (FDX) announced its fourth-quarter earnings after the market closed on June 19. FedEx surpassed analysts’ adjusted EPS estimate by 3.6%.
Key Upcoming Events for the Airline Industry
The global airline industry’s demand grew by 6.5% in 2015, higher than the past ten-year average of 5.5% and the highest growth seen since 2010.
Airline Industry Demand Continues to Grow in August
The demand for air travel experienced considerable growth in the month of August, driven by traditional vacation travel as well as lower fares of major air carriers.
Looking at Investing in JetBlue, Even without Dividends
JetBlue is in its growth phase and prefers to utilize its cash receipts to fund business growth and reduce debt levels. JetBlue currently pays no dividends.
What Investors Should Know about Delta Air Lines
Delta Air Lines (DAL) is the third largest domestic airline in the US. The company serves more than 170 million customers each year across the globe.
Alaska Air Group Completes Virgin America Merger
On April 4, 2016, Alaska Air Group (ALK) announced its acquisition of Virgin America for $57 per share in cash, which amounted to $2.6 billion.
FedEx’s New Pricing Policy Improves Its Efficiency
Effective January 2015, FedEx changed its pricing policy for all of its FedEx Ground packages less than 3 cubic feet to a “dimensional weight pricing” mechanism.
Fundamental Industry Trends that Investors Should Know
While air freight and logistics service operators have benefited from the recovery in the US economy, M&A has been the major growth driver for the industry in recent years.
Spirit Airlines: Will Its Capacity Growth Still Outpace Its Peers?
For August 2016, Spirit Airlines’ capacity grew 17.1% YoY—similar to July and the slowest growth compared to other months, so far, in 2016.
Analyzing the Valuation Trend of Courier Services
The economic upturn since 2009 has improved growth prospects for the courier companies. This coupled with improving industry margins has led to improving industry valuations.
Airlines Passenger Yield Continues to Decline in August 2015
Passenger yield declined by 8% year-over-year for August 2015 to 15.3 cents from 16.6 cents. This is the highest decline since the start of the year.
Commodities that Led Traffic Growth for CNI in Week 24
In Week 24, Canadian National Railway (CNI), the largest rail freight carrier in Canada, posted a 10.7% year-over-year rise in carload traffic.
Why BNSF’s Operating Margin Slumped in 3Q16
Along with BNSF, other Class I railroad companies’ operating margins have been in focus in recent quarters amid weak industry fundamentals.
Why Canadian Pacific’s Carloads Fell in the Week Ending July 2
Canadian Pacific (CP) registered a fall of 2.7% in total railcars in the week ended July 2, 2016.
BNSF Railway: Number One in Week 41 Rail Traffic Volume Gains
In Week 41, Berkshire Hathaway–owned BNSF Railway (BRK.B) reported a 3.8% YoY (year-over-year) growth in carload traffic.
The global airline industry contributes to economic development
With 16,000 unique city pairs, connectivity by air is estimated to have doubled in the past two decades. Moreover, although demand continues to rise, the price of travel has fallen.
Initial Reactions from the Travel Industry after Trump’s Win
Just a few days ago, we wrote about how Trump had received very little support from the travel industry. Now that he’s been elected, what’s next?
Airlines’ Relative Valuations after 4Q16 Earnings: What Is Priced In?
Alaska Air Group (ALK) currently has the highest forward EV-to-EBITDA multiple of 6.6x.
American’s debt repayments and liquidation position in 4Q14
American’s debt repayments in 2015 are estimated to be $2.1 billion, including the prepayment of $800 million in prepayment of high-cost debt.
Why the end of the Wright Amendment helps Southwest
With the repeal of the Wright Amendment on October 13, 2014, the company immediately launched nonstop flights to seven destinations. This was the largest single-day expansion in Southwest’s history.
What Makes UPS the Highest Dividend Payer in the Group?
UPS has a history of consistent dividend payouts. It’s been paying and increasing dividends on a consistent basis, except for the recessionary period from 2008–2010.
A Look at UPS’s International Package Segment
Europe accounts for about half of UPS’s International Package segment. The markets in Europe are highly fragmented, which provides higher opportunity for delivery services.
The Economic Costs That Come with Climate Goals
Climate-related policies and a transition to a low-carbon economy require capital, and most countries are already burdened with high debt.
Airlines’ Relative Valuation after 3Q17 Earnings: What Is Priced In?
Southwest Airlines (LUV) currently has the highest forward EV-to-EBITDA multiple of 6.9x among its peers.
Will the TNT Express Deal Benefit FedEx?
Earlier this year, FedEx (FDX) declared its offer to purchase TNT Express for an all-cash offer of $4.8 billion. It wants to gain better market share.
How Is UPS Valued Compared to Its Peers?
UPS’s forward PE ratio stands at 17.1x compared to its current PE ratio of 22.3. Analysts are expecting UPS’s earnings to grow in the next four quarters.
How Is FedEx Valued Compared to Its Peers?
Currently, FedEx’s (FDX) forward PE ratio stands at 13.53x. Its current PE ratio is 34.8.
Analyzing the Key Variables for the Airline Industry
Investors should keep an eye on airfare trends. Despite a 40% fall in crude oil prices—the major cost for airlines—airfares have remained fairly stable.
What are UPS’s Revenue Drivers?
Revenue drivers There are three main drivers of revenue growth for United Parcel Service (UPS): package volumes, product mix and pricing, and fuel surcharges. Package volumes and product mix and pricing are in turn driven by economic growth. Economic growth Increasing economic growth increases e-commerce demand, which in turn increases demand for courier services. […]
FedEx Stock Soars on US-China Trade Deal Optimism
FedEx stock soared yesterday on hopes of a US-China trade deal after US commerce secretary Wilbur Ross said the two sides are “making good progress.”
Canadian National Railway and Canadian Pacific in Week 28
Canadian National Railway (CNI) registered a 3.8% YoY (year-over-year) growth in carload traffic in Week 28.
Why Has YRC Worldwide Stock Fallen since 2016 Began?
With a market capitalization of ~$331.2 million on March 11, 2016, YRC Worldwide’s performance for the year has been at the bottom of its peer group. On February 9, 2016, the stock touched its 52-week low of $6.25.
Carloads Pulled Norfolk Southern’s Volume Growth Down in Week 38
Week 38 was bad for Norfolk Southern’s (NSC) carload traffic. The company reported a 3.4% YoY (year-over-year) fall in carload traffic in the week.
John Williams outlines the must-know signs pointing to a recovery
Dr. John Williams, president and CEO of the San Francisco Fed, spoke on the normalization of monetary policy and monetary tightening in a presentation to the Association of Trade & Forfaiting in the Americas in San Francisco on Thursday, May 22.
Why Are Airline Labor Costs Set to Rise?
When crude oil prices peaked at $100 per barrel, labor costs were an airline’s second largest cost. Thanks to the fall in fuel costs, labor is now the largest expense.
Delta: What to Expect from Its Q1 Earnings
Delta Air Lines (DAL) is scheduled to report its first-quarter earnings results on April 10.
Canadian Pacific: Highest Intermodal Unit Decline in Week 8
Canadian Pacific Railway’s (CP) total rail traffic fell 3% YoY to 47,392 railcars in week 8 from 48,873 railcars in the same week in 2018.
Analysts’ Estimates for Delta’s Margin Suggest Limited Expansion
Delta Air Lines’ EBITDA (earnings before interest, tax, depreciation, and amortization) margins are expected to have improved to 21% in 2015 as compared to 10% in 2014.
What Are Analysts Estimating for Spirit Airlines in 2016?
Of the 15 analysts rating Spirit Airlines’ stock, 80% (12 analysts) have a “buy” rating, 20% (three analysts) have a “hold” rating, and none of the analysts have a “sell” rating.
What Can Investors Expect from Delta Air Lines in 2Q15?
For 2Q15, Delta Air Lines expects to increase its revenues by 2% based on 3% growth in capacity and a 2%–4% decline in revenue per available seat.
Factory orders race ahead, driving companies like Union Pacific
The US Census Bureau will release the factory orders report for March on Friday, May 2. The Bureau already released an advance report on factory orders and shipments for March last week.
What’s the Outlook for Star Bulk Carriers?
If dry bulk demand picks up, Star Bulk Carriers (SBLK) with its large fleet would be in a position to capitalize on the upswing.
J.B. Hunt’s Truckload segment 4Q14 financial performance
J.B. Hunt’s operating income grew to a strong $8.1 million, beating the $1 million loss in the same quarter last year.
Could Alaska Air Group’s Margin Expand in 2017?
In 1Q17, Alaska Air Group’s (ALK) EBITDA (earnings before interest, tax, depreciation, and amortization) is expected to fall 5.8% to $385 million.
Why Genesee & Wyoming’s European Volumes Slumped in May
In May, Genesee & Wyoming’s (GWR) UK and European rail traffic slid 1.5% YoY (year-over-year).
Delta Air Lines: On the Right Route to Achieve Capacity Guidance?
Delta Air Lines (DAL) has maintained a low-capacity growth profile throughout 2017. For May 2017, DAL’s capacity growth was flat at 22,072 million miles.
What to Expect from Canadian Pacific’s 1Q16 Results
Canadian Pacific Railway (CP) will report its 1Q16 financial and operating results before the US market opens on April 20, 2016.
Southwest Airlines Stock Gained over 5% Last Week
Southwest Airlines (LUV) shares gained over 5% last week, which helped the stock end the first quarter with a cumulative gain of 11.7%.