|Bid||0.00 x 1000|
|Ask||0.00 x 1100|
|Day's Range||150.56 - 152.14|
|52 Week Range||129.07 - 158.32|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.43%|
In the previous part, we analyzed Berkshire Hathaway’s (BRK.B) BNSF (Burlington Northern Santa Fe) revenues. In this part, we’ll discuss the Consumer Products segment. In the second quarter, the Consumer Products segment’s revenues increased $237.0 million or 13.6% to $1.9 billion from $1.7 billion in the second quarter of 2017.
Berkshire Hathaway’s (BRK.B) privately owned BNSF (Burlington Northern Santa Fe) is the largest Class I railroad in the United States. On August 7, BNSF filed a 10Q with the SEC for the quarter ending on June 30. BNSF operates the largest rail network in North America through its wholly owned subsidiary—BNSF Railway Company.
A majority of analysts polled by Thomson Reuters favor a “hold” for Expeditors International of Washington (EXPD). Of the 14 analysts covering the stock, ten analysts have recommended a “hold” for the stock. The company has a consensus rating of 3.21, indicating a “hold.” It has a 12-month price target of $70.
The second-quarter earnings season for major US road transporters culminated with Expeditors International of Washington’s (EXPD) results before the market opened on August 7. The third-party logistics giant beat Thomson Reuters–surveyed analysts’ adjusted EPS estimate of $0.78 by $0.01. Its adjusted EPS of $0.79 rose 31.7% YoY (year-over-year) from $0.60 in Q2 2017.
Canadian Pacific Railway (CP) reported 5.7% YoY (year-over-year) growth in carload traffic. The railroad hauled ~31,900 railcars excluding intermodal units in Week 30, compared to ~30,200 units in the comparable period of 2017.
In Week 30, Kansas City Southern (KSU), the smallest US Class I railroad, posted the second-highest weekly gains in total rail traffic. The company’s 6.2% YoY (year-over-year) gain in the week was just behind Canadian Pacific Railway’s (CP) 6.4% gain.
In Week 30, Eastern US major railroad Norfolk Southern (NSC) ranked third based on that week’s total railcar volume gains. The railroad witnessed 5.6% YoY (year-over-year) growth in Week 30, ranking below Kansas City Southern (KSU) and Canadian Pacific (CP) with 6.2% and 6.4% gains, respectively, in that week.
On August 1, the AAR (Association of American Railroads) released the freight data for Week 30, which ended on July 28. The results are divided into carload traffic and intermodal units, which are expressed in containers and truck trailers.
In Week 29, Canada’s largest freight rail company, Canadian National Railway (CNI), posted a 5.7% YoY (year-over-year) carload traffic gain. The company hauled 62,700 railcars excluding intermodal units in the week compared to 59,300 railcars in the comparable week of the previous year. CNI’s overall traffic reported a 4.4% YoY rise in the week, whereas US railroads posted a rise of 4.9% YoY.
Kansas City Southern (KSU), the smallest US Class I railroad company, reported the lowest weekly gains in total rail traffic in Week 29. The company’s 2.2% YoY (year-over-year) gain in the week was the lowest among the gains posted by all Class I railroad companies.
Eastern US rail giant Norfolk Southern (NSC) remained the top performer in terms of Week 29 overall railcar volume gains. The company reported 8.9% YoY growth in Week 29, the highest among the gains registered by all US Class I railroad companies.
Canadian Pacific Railway (CP), Canada’s number-two rail carrier, posted a 7.6% YoY (year-over-year) rise in carload traffic. The railroad company moved ~31,500 railcars sans intermodal units in Week 29 compared to ~29,300 units in the same period last year.
On July 25, the AAR (Association of American Railroads) published the rail freight data for Week 29, which ended on July 21. Twelve major North American railroad companies submit their weekly freight volume numbers to the AAR. The data are divided into carload traffic and intermodal volumes.
Cummins (CMI) announced its second-quarter earnings today before the markets opened. With its adjusted EPS of $3.32, Cummins registered 31.2% YoY (year-over-year) growth. It reported EPS of $2.53 in Q2 2017.
In the second quarter, Boeing’s (BA) operating income was $2.7 billion, up 7.1% from $2.5 billion in the second quarter of 2017. On a reported basis, the company’s total revenue rose 5.2%, whereas its operating expenses rose 5%.
Genesee & Wyoming (GWR), the non-dividend paying, non-Class-I railroad, announced its second-quarter earnings on July 27. It was the last among major US railroads to reports its Q2 earnings. Most of them were able to surpass analysts’ adjusted earnings estimates in the quarter.
Boeing (BA), the world’s largest aerospace company, announced its second-quarter earnings results before the market opened on July 25. The US industrial (IYJ) giant delivered mixed results in the quarter.
Analysts polled by Thomson Reuters expect XPO Logistics (XPO) to report revenue of $4.2 billion in the second quarter, up 10.7% YoY (year-over-year.) For 2018, they anticipate revenue of $16.6 billion, up 16.3% year-over-year. XPO operates in two reportable segments: Transportation and Logistics. It intends to grow its transportation revenues through selective targeting of freight and continued reduction in its fleet age.
3M’s (MMM) Health Care segment accounted for 18.1% of 3M’s total revenue in Q2 2018 compared to 18.6% in Q2 2017, which implies that the segment’s contribution to 3M’s total revenue fell by 0.5 percentage points year-over-year. The segment reported revenue of $1.52 billion in Q2 2018 compared to $1.45 billion in Q2 2017, implying revenue growth of 4.8% on a year-over-year basis.
3M’s (MMM) Safety and Graphics segment accounted for 21.6% of 3M’s overall revenue in Q2 2018 compared to 20.1% in Q2 2017, an increase of 1.5 percentage points on a year-over-year basis. The segment revenue grew due to strong organic growth of 8.5%. Favorable foreign currency contributed 1% of the segment’s growth, while the acquisition revenue of Scott Safety from Johnson Controls (JCI) adjusted to the various divestitures increased the segment revenue by 6.3%.
Ingersoll Rand (IR) announced its second-quarter earnings on July 25 before the markets opened. The diversified global industrial (IYJ) company surpassed analysts’ adjusted EPS estimate of $1.73 by 7.2%. With its adjusted EPS of $1.85 in the quarter, Ingersoll reported 24.2% higher earnings compared with $1.49 in the second quarter of 2017.
Reuters-polled analysts’ mean rating of 2.11 for Boeing (BA) implies “buy.” Their recommendations for the aircraft (IYJ) manufacturer’s stock haven’t changed since its first-quarter results release. Of the 27 analysts covering the stock, eight (30%) recommend “strong buy,” eight (30%) recommend “buy,” and 11 (40%) recommend “hold.”
In Week 28, Canada’s number-two rail carrier, Canadian Pacific Railway (CP), posted a 13.1% YoY (year-over-year) growth in carload traffic. It hauled ~34,300 railcars excluding intermodal units that week from ~30,300 units in the same week of 2017.
In the second quarter, analysts expect Boeing’s (BA) operating income to rise 25.4% YoY (year-over-year) to $2.77 billion from $2.21 billion, and its operating margin to expand 190 basis points to 11.7%. In fiscal 2018, analysts expect Boeing’s operating margin to expand 1.4% YoY to 11.5%.
Genesee & Wyoming’s (GWR) Australian region’s rail traffic volumes rose 5.4% YoY (year-over-year) in June. The company hauled ~48,500 railcars in the month compared to 46,000 in June 2017. GWR furnishes carload data for its 51.1% owned Australian operations. However, the data pertaining to its Australian operations are presented on a 100% basis.