Trucking Industry Sector Constraints: Stephens Inc. Expert Analyst Details Limits to Upside for Selected LTL Carriers

Wall Street Transcript

67 WALL STREET, New York - October 9, 2013 - The Wall Street Transcript has just published its Transportation and Logistics Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Regulatory Issues in the Trucking Industry - Trucking Pricing & Capacity Dynamics - Truckload, LTL, Parcel, Rail and Intermodal - Technology Adoption and Infrastructure Investments

Companies include: Arkansas Best Corp. (ABFS), Con-Way, Inc. (CNW), Old Dominion Freight Line Inc. (ODFL), Saia, Inc. (SAIA), Covenant Transportation Group, (CVTI), Heartland Express Inc. (HTLD), Knight Transportation Inc. (KNX), Marten Transport Ltd. (MRTN), USA Truck Inc. (USAK), Werner Enterprises Inc. (WERN), JB Hunt Transport Services Inc (JBHT) and many others.

In the following excerpt from the Transportation and Logistics Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Let's start with an overview of the particular segment of the transportation and logistics sector that you follow.

Mr. Delco: At Stephens, we actually have three analysts that cover transportation. I cover trucking, so I cover mostly truckload and less-than-truckload carriers.

TWST: What are some of the companies that are among them?

Mr. Delco: In the less-than-truckload sector, Arkansas Best (ABFS), Con-way (CNW), Old Dominion (ODFL), Saia (SAIA) and Vitran (VTNC). On the truckload side, Celadon (CGI), Covenant (CVTI), Heartland (HTLD), Knight (KNX), Marten (MRTN), Swift (SWFT), USA Truck (USAK) and Werner (WERN).

TWST: What we see in some of the other segments of the transport industry is that companies that are asset-heavy experience more problems achieving profitability than those that are asset-light. Is that the same in the trucking industry do you find?

Mr. Delco: I would say that there are some companies that are still struggling with profitability, and particularly in the truckload sector, we haven't seen supply/demand dynamics improve to a point at which it's favoring the carriers yet. We continue to see supply come out of the industry; however, we haven't seen an acceleration in demand to a point where it tips the scales in favor of the truckload carriers. So for the asset-based truckload guys...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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