Transportation & Logistics

A legitimate bull market In this series, we’ve taken a look at Richard Bernstein’s views on investors’ fear of an impending bear market. In Richard Bernstein Advisors’ October Insights newsletter, he rejects the notion that the current rise in US stocks (SPLV) (OEF) has been brought about only by the Fed’s easy monetary policy. In the […]

Analysts expect JetBlue Airways’ (JBLU) 3Q16 revenue to come in at $1.7 billion, a year-over-year rise of 2.2%.

General Electric’s Aviation segment General Electric’s (GE) Aviation segment is the second-largest contributor to the company’s overall revenues. This segment’s 22.5% operating margins in 1H16 were the largest among all eight segments reported under GE Industrial. Commercial aviation According to the International Air Transport Association (or IATA), global air traffic is expected to fall to […]

Analysts’ estimates Analysts estimate that General Electric’s 3Q16 revenues will total $30.0 billion, up by 7.3% on a year-over-year basis. Even though energy markets are acting as a deterrent to General Electric’s (GE) overall revenues, the favorable business environment in power, aviation, and healthcare will jack up the revenues. Analysts expect the next four quarters’ revenue to […]

All airline pilots have their eyes on Delta Air Lines’ (DAL) final agreement with its pilots. This is because Delta’s deal will set a precedent in the industry.

On May 25, 2016, FedEx (FDX) completed the 4.4 billion euro acquisition of the Netherlands-based TNT Express NV.

In this part of the series, we’ll take a look at what Wall Street analysts are saying about US truckload carriers and how they’re rating the stocks.

General Electric’s 2016 free cash flows are expected to remain at $8.2 billion. This is mainly due to free cash flows of -$6.0 billion generated in 1H16.

Landstar System (LSTR) and Heartland Express (HTLD) have higher available cash on their balance sheets than total debt.

In 2015, Southwest Airlines’ prudent approach to capacity growth resulted in the better utilization of its capacity.

Foreign currency fluctuations and lower fuel surcharges in the international market will have a negative impact on Alaska Air Group’s unit revenues.

For August 2016, Alaska Air Group’s (ALK) capacity increased by 10.3% YoY. After average growth of 13% in 1Q16, its growth slowed down to 11% in 2Q16.

In July 2016, Southwest Airlines’ (LUV) traffic grew by 1.4% YoY, which was slightly lower than its capacity growth of 2.3% YoY.

For July 2016, Alaska Air Group’s (ALK) capacity increased by 9.6% year-over-year. After an average growth of 13% in 1Q16, growth slowed to 11% in 2Q16 and is slowing further in the third quarter.

As of July 22, 2016, JetBlue was valued at 3.8x its forward EV-to-EBITDA multiple, which is lower than its average valuation of 4.8x since September 2009.

Capacity growth Like other airlines, JetBlue Airways (JBLU) has taken advantage of falling crude oil prices to expand its existing fleet. JetBlue’s double-digit revenue growth has been fueled by double-digit growth in its capacity. Historically, JetBlue Airways has seen the highest capacity growth among the seven major airlines. Spirit Airlines (SAVE) has seen the highest growth, followed by Alaska […]

Among major truckload companies, in 1Q16, Werner Enterprises (WERN) declared the highest dividend growth, at $0.06 per share, which is a 20% YoY increase.

Revenues from American Airlines’ foreign operations make up about 30% of its total operating revenues. The airline has been consistently expanding its global footprint by adding new routes.

Among truckload companies, Landstar and Heartland have a lot of available cash compared to total debt. Swift and J.B. Hunt have high net debt-to-EBITDAs.

Swift Transportation has a consensus rating of 4.36 or “strong buy” among truckload carriers. Out of 22 analysts, 15 gave it a “buy” recommendation.

FedEx expects FedEx Freight revenues to rise in fiscal 2017.

American Airlines’ (AAL) capacity growth is one of the slowest in the industry. However, it has the highest capacity among its peers.

In this part of the series, we’ll look at the main services and categories that add to American Airlines’ (AAL) revenues. The major component of revenues still comes from airfares.

After the merger, American Airlines became the world’s leading airline in terms of fleet size, network, and finances. American Airlines stock has risen more than 270% since 2011.

Soon after US Airways declared its intention to merge with American Airlines, AAL started working on its weak points and restructuring costs.

The fleet of railroads includes railcars and locomotives. In this part, we’ll compare the average locomotive fleet age of US Class I railroads.

The EV-to-forward EBITDA ratio denotes how a railroad is valued for each dollar of EBITDA that it’s anticipated to earn.

Recently, United Parcel Service has broadened the service offering of UPS My Choice to 15 more countries and territories in the Americas and Europe.

United Parcel Service, through 10,000 routes optimized with ORION, saves up to 1.5 million gallons of fuel per year.

In 2015, United Parcel Service reported total revenues of $58.4 billion. The company’s primary competitor in the US is the Memphis-headquartered FedEx Corporation.

In 1988, United Parcel Service (UPS) bought its Italian partner, Alimondo, a move aimed at expansion in Europe. In the same year, UPS went on an acquisition spree.

In fiscal 2015, FDX increased its revenues by $1.9 billion. Its total revenue was a $47.4 billion for the year.

FedEx provides a portfolio of transportation, e-commerce, and business services through wholly owned subsidiaries.

In February 2016, the airline capacity of the eight major airlines exceeded their traffic growth by an average of 2%.

The airline industry is a capital-intensive industry with heavy investments required in building infrastructure, fleets, and their maintenance. As a result, airline stocks generally have high levels of debt on their balance sheets.

Spirit Airlines has historically followed a low-cost structure, and took numerous measures to keep its cost components the lowest in the industry.

United Parcel Service (UPS) has been a consistent dividend payer for the last 20 years.

Spirit and its competitors have seen their EV/EBITDA decrease in the last six months due to the fear of a large increase in available seat miles.

For the seventh consecutive year, Alaska Airlines held the top spot in Customer Satisfaction among the Traditional Network Carriers survey conducted by J.D. Power.

Spirit (SAVE) ranks first in profitability among seven airlines in the United States. The main driver for this ranking comes from its exceptional ability to manage costs.