We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Genesee & Wyoming (GWR) Q3 Earnings Beat Estimates, Up Y/Y
Read MoreHide Full Article
Genesee & Wyoming Inc.’s third-quarter earnings (excluding 7 cents from non-recurring items) of $1.23 per share surpassed the Zacks Consensus Estimate by 8 cents. The bottom line also increased 51.9% on a year-over-year basis. Results were aided by higher revenues and lower effective tax rate.
Operating revenues increased 4.6% year over year to $603.3 million, which outpaced the Zacks Consensus Estimate of $594.5 million. Freight revenues accounted for bulk of the top line (70.2%) and improved 5.6% to $418.2 million. Meanwhile, freight-related revenues contributed 24.1% to the top line and increased 3.2% to $142.4 million. The balance came from ‘other revenues’. Effective tax rate decreased to 30% in the reported quarter from 36.2% a year ago due to the new tax law (Tax Cuts and Jobs Act). Following the outperformance, the stock gained 5.3% on Oct 30 to $80.55.
Total operating expenses (on a reported basis) rose 1.8% to $475.5 million, mainly driven by higher labor-related costs. Operating income (on a reported basis) was up 16.4% to $127.8 million in the quarter. The metric, on an adjusted basis, increased 14.3% to $130.5 million.
Traffic at Genesee & Wyoming, which carries a Zacks Rank #3 (Hold), increased 3% year over year to 838,919 carloads. Average revenues per carload during the reported quarter came in at $505 compared with $492 a year ago. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Genesee & Wyoming, which is very active on the buyback front, recently completed its previously authorized share repurchase plan valued at $300 million. The board has cleared a new buyback plan worth $500 million.
Segmental Results
Geographically, operating revenues from North American operations increased 11.5% in the quarter. However, revenues from the company’s Australian (51.1% owned) and U.K./European operations decreased 5.6% and 3.3%, respectively. Notably, North American, Australian and U.K./European operations accounted for a respective 59%, 12.7% and 28.3% of the total operating revenues in the quarter under review.
At the North American unit, adjusted operating ratio (operating expenses as a percentage of revenues) improved 270 basis points to 71.2% in the third quarter. We note that lower the value of the metric the better. At its Australian operations, the same deteriorated 100 basis points to 74.2%. Adjusted operating ratio at its U.K./European operations also decreased 70 basis points to 95.2%. On a consolidated basis, the metric stood at 78.4% compared with 80.2% a year ago.
Genesee & Wyoming, Inc. Price, Consensus and EPS Surprise
For the fourth quarter of 2018, operating revenues (consolidated) are envisioned between $555 million and $575 million. At the North American segment, the same is anticipated between $325 million and $330 million. Operating revenues is expected to be in the $70-$75 million range in Australia and $160-$170 million at the company’s U.K./European operations.
Earnings per share are expected to be approximately 90 cents per share in the fourth quarter of 2018. The Zacks Consensus Estimate for earnings and revenues is pegged at $1.10 and $596.32 million, respectively. Operating ratio (excluding U.K. restructuring costs) is projected to lie between 82% and 83%. Effective tax rate is anticipated to be approximately 28%.
Upcoming Releases
Investors interested in the broader Transportation sector are keenly awaiting quarterly results from key players like ArcBest Corporation (ARCB - Free Report) , Expeditors International of Washington, Inc. (EXPD - Free Report) and Hertz Global Holdings, Inc (HTZ - Free Report) . While ArcBest will report third-quarter earnings on Nov 1, Expeditors and Hertz Global Holdings will release the same on Nov 6 and Nov 8, respectively.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
Image: Bigstock
Genesee & Wyoming (GWR) Q3 Earnings Beat Estimates, Up Y/Y
Genesee & Wyoming Inc.’s third-quarter earnings (excluding 7 cents from non-recurring items) of $1.23 per share surpassed the Zacks Consensus Estimate by 8 cents. The bottom line also increased 51.9% on a year-over-year basis. Results were aided by higher revenues and lower effective tax rate.
Operating revenues increased 4.6% year over year to $603.3 million, which outpaced the Zacks Consensus Estimate of $594.5 million. Freight revenues accounted for bulk of the top line (70.2%) and improved 5.6% to $418.2 million. Meanwhile, freight-related revenues contributed 24.1% to the top line and increased 3.2% to $142.4 million. The balance came from ‘other revenues’. Effective tax rate decreased to 30% in the reported quarter from 36.2% a year ago due to the new tax law (Tax Cuts and Jobs Act). Following the outperformance, the stock gained 5.3% on Oct 30 to $80.55.
Total operating expenses (on a reported basis) rose 1.8% to $475.5 million, mainly driven by higher labor-related costs. Operating income (on a reported basis) was up 16.4% to $127.8 million in the quarter. The metric, on an adjusted basis, increased 14.3% to $130.5 million.
Traffic at Genesee & Wyoming, which carries a Zacks Rank #3 (Hold), increased 3% year over year to 838,919 carloads. Average revenues per carload during the reported quarter came in at $505 compared with $492 a year ago. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Genesee & Wyoming, which is very active on the buyback front, recently completed its previously authorized share repurchase plan valued at $300 million. The board has cleared a new buyback plan worth $500 million.
Segmental Results
Geographically, operating revenues from North American operations increased 11.5% in the quarter. However, revenues from the company’s Australian (51.1% owned) and U.K./European operations decreased 5.6% and 3.3%, respectively. Notably, North American, Australian and U.K./European operations accounted for a respective 59%, 12.7% and 28.3% of the total operating revenues in the quarter under review.
At the North American unit, adjusted operating ratio (operating expenses as a percentage of revenues) improved 270 basis points to 71.2% in the third quarter. We note that lower the value of the metric the better. At its Australian operations, the same deteriorated 100 basis points to 74.2%. Adjusted operating ratio at its U.K./European operations also decreased 70 basis points to 95.2%. On a consolidated basis, the metric stood at 78.4% compared with 80.2% a year ago.
Genesee & Wyoming, Inc. Price, Consensus and EPS Surprise
Genesee & Wyoming, Inc. Price, Consensus and EPS Surprise | Genesee & Wyoming, Inc. Quote
Q4 Outlook
For the fourth quarter of 2018, operating revenues (consolidated) are envisioned between $555 million and $575 million. At the North American segment, the same is anticipated between $325 million and $330 million. Operating revenues is expected to be in the $70-$75 million range in Australia and $160-$170 million at the company’s U.K./European operations.
Earnings per share are expected to be approximately 90 cents per share in the fourth quarter of 2018. The Zacks Consensus Estimate for earnings and revenues is pegged at $1.10 and $596.32 million, respectively. Operating ratio (excluding U.K. restructuring costs) is projected to lie between 82% and 83%. Effective tax rate is anticipated to be approximately 28%.
Upcoming Releases
Investors interested in the broader Transportation sector are keenly awaiting quarterly results from key players like ArcBest Corporation (ARCB - Free Report) , Expeditors International of Washington, Inc. (EXPD - Free Report) and Hertz Global Holdings, Inc (HTZ - Free Report) . While ArcBest will report third-quarter earnings on Nov 1, Expeditors and Hertz Global Holdings will release the same on Nov 6 and Nov 8, respectively.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>