|Bid||0.0000 x 800|
|Ask||0.0000 x 1300|
|Day's Range||190.0400 - 191.7500|
|52 Week Range||169.4500 - 209.4300|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.90|
|Expense Ratio (net)||0.43%|
Major Western US railroad company Union Pacific (UNP) recorded a ~1% YoY (year-over-year) fall in Week 40 carload traffic. In the week, the company carried ~95,300 railcars sans intermodal units compared to ~96,300 in the comparable week of 2017.
In week 39, Canadian National Railway (CNI) recorded a 1.4% YoY (year-over-year) carload traffic gain. The railroad moved ~67,300 railcars excluding intermodal traffic from ~66,400 units in the comparable period of 2017.
You can invest in companies that move people and products by buying shares of exchange-traded funds (ETFs) that specialize in the transportation sector. The transportation sector is one of the most broadly diversified with industrial companies representing airlines, railroads, truckers, equipment and leasing stocks, and logistics companies.
In week 39, Berkshire-Hathaway-owned BNSF Railway (BRK.B) registered a 3.9% YoY (year-over-year) carload traffic rise. The Western US railroad hauled ~105,000 railcars excluding intermodal traffic in the week compared to ~101,100 units in week 39 last year.
In Week 38, Canadian National Railway (CNI) registered a 3.1% YoY (year-over-year) carload traffic gain. In the week, Canada’s largest rail company carried ~65,500 railcars other than intermodal units compared to ~63,500 railcars in Week 38 of 2017.
In the railroad (IYT) industry, operating ratios are crucial. The wider a company’s operating margin, the higher its operating efficiency, and in turn, its performance. Recently, Union Pacific (UNP) announced that it has kickstarted its new operating strategy, Unified Plan 2020, which is expected to lower UNP’s operating expenses in future quarters. Let’s compare major railroads’ second-quarter operating margins.
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. Compared to ~71,700 railcars sans intermodal in Week 38 of 2017, NSC hauled 69,300 railcars in Week 38 this year.
The AAR (Association of American Railroads) published its weekly rail traffic data for 12 key North American railroad companies on September 26. The data were for Week 38, which ended on September 22. AAR’s weekly freight data are classified into carload traffic and intermodal units, which are expressed in containers and truck trailers.
After slow growth in the first half of 2018, analysts are estimating JetBlue Airways’ (JBLU) revenue to more than double in the second half of 2018. JetBlue recorded revenue growth of 9.4% year-over-year (or YoY) in Q1 2018 and 4.7% YoY in Q2 2018.
Crude oil prices have been rising throughout 2018 due to supply concerns. The pending Iran sanctions, as threatened by the Trump government, could add to the supply constraints. Despite rising fuel prices, JBLU has raised its third-quarter guidance mainly due to strong demand towards the end of the quarter.
YRC Worldwide (YRCW) operates through two segments: YRC Freight and YRC Regional. YRC Freight’s tonnage per day in July fell ~3.8% YoY (year-over-year) compared to the same month last year. Its tonnage per day in August also fell ~3.1% YoY.
In the second week of September, major parcel delivery giant FedEx (FDX) announced that it intends to hire 55,000 additional team members for the 2018 holiday season. FedEx also stated that the majority of its workforce will stay with it after the holiday peak. A few days ago, FedEx announced the expansion of its FedEx Ground operations to six days a week throughout the year from the previous five days.
Though United Continental (UAL) has clearly emerged as the investor favorite for 2018, analysts continue to favor Delta Air Lines (DAL) stock, as was the case in 2017. As of September 21, 94% of the 17 analysts tracking Delta have a “buy” or similar recommendation for the stock. American Airlines (AAL) seems to be the next favorite with 75% of the 16 analysts tracking the stock giving it a “buy” rating. 73% of the 15 analysts tracking Spirit Airlines (SAVE) stock have a “buy” rating on it, while 72% of the 18 analysts tracking Southwest Airlines stock have a “buy” rating on it.
American Airlines (AAL) was the last of the three legacy carriers to announce an increase in checked baggage fees. The company’s stock rose on Friday, September 21, after the announcement. This is the first time the company raised baggage fees since 2010. The company said American Airlines “AAdvantage” members, as well as first class, business class, and perineum economy customers would be exempt from these fees.
In Week 37, Norfolk Southern (NSC) reported a 2.7% YoY (year-over-year) decline in carload traffic. The company hauled 68,200 railcars except for intermodal units in the week compared to ~70,100 in the corresponding week of 2017.
In August, Genesee & Wyoming’s (GWR) Australia region witnessed robust 37.1% YoY (year-over-year) growth in rail traffic. The company hauled ~54,500 railcars in that month—compared to ~39,800 in the corresponding period of 2017.
Canadian Pacific Railway (CP), a US Class I railroad (IYT) and Canada’s number two rail freight carrier, declared a quarterly cash dividend of 0.65 Canadian dollars per share on September 17. In the first quarter, Canadian Pacific Railway raised its quarterly dividend per share 15.5% from to the current levels from 0.5625 Canadian dollars. As of September 21, the railroad had 142.6 million outstanding common shares, which translates into a quarterly cash dividend payment of 93.0 million Canadian dollars.
US-based Genesee & Wyoming (GWR) is a worldwide player in the railroad industry. With over 100 years of history, the company has a presence around the world, including North America, Latin America, Europe, and Australia.
FedEx (FDX) incurred capital expenditure of $1.17 billion in the first quarter compared to $1.0 billion in the comparable period of fiscal 2018. The increase in capex was due to aircraft purchases, higher IT spending in FedEx Services segment, and increased vehicle purchases in the FedEx Freight and Express segment. For fiscal 2019, FedEx has slightly lowered its 2019 capex forecast to $5.6 billion, or ~8% of its projected revenue.
We’ll start FedEx’s (FDX) post-earnings series by looking into its first-quarter 2019 revenue. The company’s first quarter revenue was $17.0 billion, which beat analysts’ estimate of $16.8 billion by 1%. In the same quarter of fiscal 2018, the parcel delivery giant’s revenue stood at ~$15.3 billion, reflecting an 11.5% YoY (year-over-year) rise. The double-digit revenue growth was due to increased volumes, higher yields across segments, and lower taxes.
Eastern US rail carrier Norfolk Southern (NSC) posted a 1.2% YoY (year-over-year) increase in carload traffic. The railroad moved 66,000 railcars excluding intermodal units in the week compared to ~65,300 in the same week of 2017.
Western US railroad giant Union Pacific (UNP) reported a 6.4% YoY (year-over-year) increase in carload traffic in week 36. During the week, UNP moved ~91,700 railcars excluding intermodal units compared to ~86,200 in the corresponding period of 2017.
Technically speaking, the major U.S. benchmarks have rallied from two significant support points, writes Michael Ashbaugh.
In Week 35, Canada’s leading railroad, Canadian National Railway (CNI), recorded 4.6% YoY (year-over-year) growth in carload traffic. In the week, CNI moved ~67,000 railcars sans intermodal units compared to ~64,000 units in Week 35 of 2017.
A tax deduction for capital expenditures according to the new Tax Cuts and Jobs Act is a boon for the transportation industry. Lower taxes also help increase free cash flow. Transportation (IYT) is a cyclical industry that was reeling under pressure due to lower freight volumes in recent years.