|Bid||197.73 x 1100|
|Ask||201.80 x 800|
|Day's Range||198.89 - 199.55|
|52 Week Range||162.38 - 206.73|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.43%|
Berkshire Hathaway’s (BRK.B) BNSF (Burlington Northern Santa Fe) railroad operations are reported in four segments—Industrial Products, Consumer Products, Agricultural Products, and Coal. In the second quarter, BNSF’s total revenues were $5.8 billion—up 12% YoY (year-over-year) from $5.2 billion in the second quarter of 2017. Excluding non-rail logistics and accessorial revenues of $324.0 million, BNSF’s total freight revenues were $5.5 billion—up 11.1% YoY from $5.0 billion in the second quarter of 2017.
In this part of the series, we’ll analyze Expeditors International of Washington’s (EXPD) operating margins. In the second quarter, it reported operating income of $183.5 million on gross revenues of ~$1.95 billion. In Q2 2017, it earned operating income of $168.2 million on gross revenue of $1.67 billion.
Let’s look now at Expeditor International of Washington’s (EXPD) Airfreight segment, its largest revenue contributor. The segment’s contribution to the company’s net revenue rose 1.8% to 32.4% in the second quarter, from 30.6% in Q2 2017.
Of the 28 analysts covering Union Pacific (UNP) stock, 15 have recommended “buys,” 12 have recommended “holds,” and one has recommended a “sell.” Analysts’ target price of $155.84 is ~4% higher than UNP’s August 7 closing price of $149.88. Its business reorganization could increase its operating costs in the short term, but analysts expect it to expand its operating margin in the long term.
Canadian Pacific Railway (CP) and Canadian National Railway (CNI) stocks have been hit in 2018 due to NAFTA renegotiations. This has been reflected in their year-to-date returns as of August 6, which are lower than the returns of US-originated railroad companies (IYT) such as Union Pacific (UNP) and CSX Corporation (CSX). Canadian Pacific Railway’s Precision Scheduled Railroading model has benefited it in recent years, as has been evidenced by its higher operating margin compared to those of its Class I railroad peers.
BNSF Railway (BRK.B) reported a 4.5% YoY (year-over-year) increase in carload traffic in Week 30. During the week, the Western US major railroad company hauled ~103,300 railcars excluding intermodal compared to ~98,800 units in the corresponding period of 2017.
On July 31, Western US rail giant Union Pacific (UNP) saw its stock set a new all-time high of $151.50. In the last week of July, the company announced a 10% dividend rise, taking its dividend per share to $0.80 from $0.73.
Technically speaking, the S&P 500 and Nasdaq Composite have rallied from major support to start August, rising within view of record territory, writes Michael Ashbaugh.
Earlier in this series, we reviewed United Parcel Service’s (UPS) International Package segment. In this section, we’ll take a close look at its Supply Chain and Freight segment’s performance in the second quarter.
Previously, we looked at a snapshot of United Parcel Service’s (UPS) total second-quarter revenues. In this part, we’ll examine the company’s US Domestic Package segment. This segment is the largest contributor to UPS’s business, accounting for ~60.0% of its revenues.
In Week 29, BNSF Railway (BRK.B) witnessed a carload traffic rise of 3.2% YoY (year-over-year). In the week, the Berkshire Hathaway–owned company moved ~99,600 railcars sans intermodal compared to ~96,500 units in the corresponding period of 2017.
Old Dominion Freight Line (ODFL) announced its second-quarter earnings today before the market opened. The trucking company beat Thomson Reuters’s adjusted EPS estimate of $1.83 by 8.9%. ODFL’s adjusted EPS came in at $1.99 in the quarter, up 67.2% year-over-year from $1.19 in Q2 2017.
Canadian National Railway (CNI) is the largest rail freight carrier in Canada. In Week 28, it registered a 3.8% YoY (year-over-year) growth in carload traffic. It moved ~62,300 railcars excluding intermodal units compared with ~60,000 units.
During the quarter, they expect its revenue to grow by 4.7% YoY (year-over-year) to $23.8 billion from $22.7 billion. Although Boeing has revised its operating cash flow and earnings outlook for this year, it has maintained its revenue guidance of $96.0 billion–$98.0 billion, accounting for its increased production of 737 aircraft and growth in the Defense, Space & Security and Global Services segments.
On July 19, J. B. Hunt Transport Services (JBHT) announced a regular quarterly dividend of $0.24 per share on its outstanding common stock. The cash dividend is payable to shareholders of record on August 3. It will be paid on August 17. The $0.24 per share dividend will result in a quarterly payment of $26.3 million.
Ranked among the five largest truckload (IYT) companies in the United States, Werner Enterprises (WERN) reported its second-quarter results on July 23 after the market closed. The company exceeded analysts’ second-quarter adjusted EPS estimate by a wide margin.
The AAR (Association of American Railroads) publishes weekly traffic data every Wednesday. Twelve major North American railroads submit their weekly freight volume statistics to the AAR. The data are divided into carload traffic and intermodal volumes expressed in containers and truck trailers.
In this part, we’ll examine its intermodal freight revenues. CSX’s intermodal volumes rose 2.0% YoY in the second quarter to 735,000 containers and trailers from 718,000 units in the same period last year. The company’s intermodal revenue per unit was $667.00 in the second quarter compared to $624.00 in the second quarter of 2017.
J.B. Hunt Transport Services (JBHT) has a consensus rating of 2.25, which indicates a “buy.” Among the 24 analysts polled by Thomson Reuters, there weren’t any changes in analysts’ opinion towards J.B. Hunt after its second-quarter results. Seven (29.2%) of the analysts recommend a “strong buy,” five (20.8%) recommend a “buy,” 11 (45.8%) recommend a “hold,” and one (4.2%) recommends a “sell.”
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.
Eastern US major rail carrier CSX (CSX) posted a 1.3% YoY (year-over-year) carload volume growth in Week 27. It moved ~60,200 railcars, up from ~59,400. Its railcar traffic is slowly getting back on track this year after a dull 2017. However, its carload traffic loss in percentage terms hasn’t fully recovered. Compared with US railroads’ 5.4% YoY growth, CSX’s gains appear to be very small. Even its rival Norfolk Southern (NSC) managed to post a 9.2% YoY growth in Week 27, which was far more than CSX.
Transportation companies have been among the strongest performing assets in the public markets over the past few years. Extremely strong trendlines dominate the charts, which is one of the primary reasons that the sector has been a favorite of active traders. Traders who are interested in gaining exposure to niche sectors such as transportation tend to flock to exchange-traded products such as the iShares Transportation Average ETF.
CSX (CSX), another Eastern US prominent railroad, reported a 1.6% YoY (year-over-year) growth in carload traffic. That week, it hauled ~71,300 railcars, up from ~70,200. In 2018, its railcar traffic is slowly getting back on track after a lackluster 2017. Compared with US railroads’ 2.5% YoY rise, CSX reported fewer gains. Its carload volume expansion by percentage was half its competitor Norfolk Southern’s (NSC) 3.1% YoY gains in Week 25.