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Transportation Stock Q2 Earnings on Jul 25: NSC, KNX & More
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The second-quarter earnings season is gathering steam with 87 S&P 500 members having reported results so far. These 87 members account for 25.7% of the index’s total market capitalization. Earnings for the companies have risen 20.9% year over year on 10.3% increase in revenues. Moreover, 86.2% of the companies beat on earnings while 77% surpassed on revenues.
Per the latest Earnings Preview, more than 650 companies will be reporting financial numbers this week including 175 S&P 500 members. Combining the actual results from the87 reported members and the estimates of the pending 413 companies, the total earnings are expected to be up 21% from the same period last year on 8.3% higher revenues. Moreover, 11 of the 16 Zacks sectors are expected to witness double-digit earnings growth.
One of these sectors is the transportation sector wherein earnings are predicted to expand 14.8% while revenues are anticipated to increase 8.3%. Though the figures are impressive, it compares unfavorably with that achieved in the previous quarter. In the first quarter, earnings for the sector rose 21.3% on 9% higher revenues.
Within the widely diversified transportation sector, railroads have been benefiting from impressive volume growth. Notably, key sector participant Kansas City Southern recently reported better-than-expected earnings on strong volume expansion.
However, the truck companies are struggling with acute driver shortage and a subsequent restraint on truck count. Also, the spike in fuel costs poses a threat to the entire transportation sector as fuel comprises a major portion of operating expense for these companies. Thus, any incident causing an upsurge in the metric pushes up operating costs, hurting the bottom line in turn.
Given this backdrop, investors interested in the transportation space will keenly await second-quarter reports from leading players, namely Norfolk Southern Corporation (NSC - Free Report) , Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , Trinity Industries, Inc. (TRN - Free Report) , Ryder System, Inc. (R - Free Report) and Kirby Corporation (KEX - Free Report) on Jul 25.
Per our quantitative model, a company needs the right combination of the following two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Norfolk Southern is primarily engaged in the rail transportation of raw material, intermediate products and finished goods, primarily in Southeast, East and Midwest United States. The company is likely to beat on earnings in the second quarter as it carries a Zacks Rank #2 (Buy) and has an Earnings ESP of +0.36%. (Read more: Can Volume Growth Aid Norfolk Southern's Q2 Earnings?)
Norfolk Southern Corporation Price and EPS Surprise
Knight-Swift is the largest truckload carrier in North America. The company based in Phoenix, AZ, also provides transportation solutions. The stock has an Earnings ESP of +2.57% and a Zacks Rank of 2. Thus, buoyed by these two favorable conditions, the company’s earnings are likely to surpass estimates in the impending results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Knight-Swift Transportation Holdings Inc. Price and EPS Surprise
Trinity is a diversified industrial company based in Dallas, TX. The company owns market-leading businesses offering products and services to various sectors such as energy, chemical, agriculture, transportation and construction sectors. The stock is a Zacks #2 Ranked player and is likely to beat estimates in the quarter to be reported as it also has an Earnings ESP of +6.38%. (Read more: Is a Beat Likely for Trinity Industries in Q2 Earnings?)
Ryder is a Florida-based corporation recognized as one of the world's largest providers of integrated logistics and transportation solutions. Though the company holds a Zacks Rank of 3, it is not likely to beat on earnings as it has an Earnings ESP of -0.47%. (Read more: Ryder Q2 Earnings: What's in the Cards for the Stock?)
Kirby operates a fleet of inland tank barges in the United States. The company although carries a Zacks Rank #2, is not likely to beat estimates, as it has an Earnings ESP of 0.00%. Though the company’s favorable rank increases the predictive power of ESP, its 0.00% ESP leaves the surprise prediction inconclusive.
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Transportation Stock Q2 Earnings on Jul 25: NSC, KNX & More
The second-quarter earnings season is gathering steam with 87 S&P 500 members having reported results so far. These 87 members account for 25.7% of the index’s total market capitalization. Earnings for the companies have risen 20.9% year over year on 10.3% increase in revenues. Moreover, 86.2% of the companies beat on earnings while 77% surpassed on revenues.
Per the latest Earnings Preview, more than 650 companies will be reporting financial numbers this week including 175 S&P 500 members. Combining the actual results from the87 reported members and the estimates of the pending 413 companies, the total earnings are expected to be up 21% from the same period last year on 8.3% higher revenues. Moreover, 11 of the 16 Zacks sectors are expected to witness double-digit earnings growth.
One of these sectors is the transportation sector wherein earnings are predicted to expand 14.8% while revenues are anticipated to increase 8.3%. Though the figures are impressive, it compares unfavorably with that achieved in the previous quarter. In the first quarter, earnings for the sector rose 21.3% on 9% higher revenues.
Within the widely diversified transportation sector, railroads have been benefiting from impressive volume growth. Notably, key sector participant Kansas City Southern recently reported better-than-expected earnings on strong volume expansion.
However, the truck companies are struggling with acute driver shortage and a subsequent restraint on truck count. Also, the spike in fuel costs poses a threat to the entire transportation sector as fuel comprises a major portion of operating expense for these companies. Thus, any incident causing an upsurge in the metric pushes up operating costs, hurting the bottom line in turn.
Given this backdrop, investors interested in the transportation space will keenly await second-quarter reports from leading players, namely Norfolk Southern Corporation (NSC - Free Report) , Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , Trinity Industries, Inc. (TRN - Free Report) , Ryder System, Inc. (R - Free Report) and Kirby Corporation (KEX - Free Report) on Jul 25.
Per our quantitative model, a company needs the right combination of the following two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Norfolk Southern is primarily engaged in the rail transportation of raw material, intermediate products and finished goods, primarily in Southeast, East and Midwest United States. The company is likely to beat on earnings in the second quarter as it carries a Zacks Rank #2 (Buy) and has an Earnings ESP of +0.36%. (Read more: Can Volume Growth Aid Norfolk Southern's Q2 Earnings?)
Norfolk Southern Corporation Price and EPS Surprise
Norfolk Southern Corporation Price and EPS Surprise | Norfolk Southern Corporation Quote
Knight-Swift is the largest truckload carrier in North America. The company based in Phoenix, AZ, also provides transportation solutions. The stock has an Earnings ESP of +2.57% and a Zacks Rank of 2. Thus, buoyed by these two favorable conditions, the company’s earnings are likely to surpass estimates in the impending results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Knight-Swift Transportation Holdings Inc. Price and EPS Surprise
Knight-Swift Transportation Holdings Inc. Price and EPS Surprise | Knight-Swift Transportation Holdings Inc. Quote
Trinity is a diversified industrial company based in Dallas, TX. The company owns market-leading businesses offering products and services to various sectors such as energy, chemical, agriculture, transportation and construction sectors. The stock is a Zacks #2 Ranked player and is likely to beat estimates in the quarter to be reported as it also has an Earnings ESP of +6.38%. (Read more: Is a Beat Likely for Trinity Industries in Q2 Earnings?)
Trinity Industries, Inc. Price and EPS Surprise
Trinity Industries, Inc. Price and EPS Surprise | Trinity Industries, Inc. Quote
Ryder is a Florida-based corporation recognized as one of the world's largest providers of integrated logistics and transportation solutions. Though the company holds a Zacks Rank of 3, it is not likely to beat on earnings as it has an Earnings ESP of -0.47%. (Read more: Ryder Q2 Earnings: What's in the Cards for the Stock?)
Ryder System, Inc. Price and EPS Surprise
Ryder System, Inc. Price and EPS Surprise | Ryder System, Inc. Quote
Kirby operates a fleet of inland tank barges in the United States. The company although carries a Zacks Rank #2, is not likely to beat estimates, as it has an Earnings ESP of 0.00%. Though the company’s favorable rank increases the predictive power of ESP, its 0.00% ESP leaves the surprise prediction inconclusive.
Kirby Corporation Price and EPS Surprise
Kirby Corporation Price and EPS Surprise | Kirby Corporation Quote
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>