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What's in Store for USA Truck (USAK) Stock in Q2 Earnings?

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USA Truck (USAK - Free Report) is scheduled to report second-quarter 2021 results on Jul 29, after market close.

The company boasts a stellar surprise history with its earnings having surpassed the Zacks Consensus Estimate in each of the last four quarters in excess of 100%, on average. The Zacks Consensus Estimate for second-quarter 2021 earnings has been steady at 50 cents per share in the past 60 days.

Let’s discuss the factors that might have impacted USA Truck’s performance in the June quarter.

USA Truck, Inc. Price and EPS Surprise

 

USA Truck, Inc. Price and EPS Surprise

USA Truck, Inc. price-eps-surprise | USA Truck, Inc. Quote

 

We expect the company’s second-quarter performance to have been hurt by professional driver shortages, thereby resulting in reduced truck capacity.  

Despite such adversities, the company’s cost-control efforts are likely to have boosted its bottom line in the June quarter. Due to the cost discipline, adjusted operating ratio (operating expenses, as a percentage of revenues) is likely to have improved sequentially in the to-be-reported quarter. The gradual opening up of the U.S. economy with vaccination programs, led to increased economic activities. This is likely to have inflated operating revenues at both the trucking and USAT Logistics segments owing to higher demand.

Significant increase in freight demand is also anticipated to have aided the company’s second-quarter performance.

What Does the Zacks Model Say?

The proven Zacks model does not predict an earnings beat for USA Truck this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: USA Truck has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate of 50 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: USA Truck carries a Zacks Rank #2, currently.

Highlights of Q1 Earnings

USA Truck’s earnings of 43 cents per share surpassed the Zacks Consensus Estimate of 16 cents. Operating revenues of $158.5 million increased 25% on a year-over-year basis.

Stocks to Consider

Investors interested in the broader Transportation  sector may consider Schneider National, Inc. (SNDR - Free Report) , Canadian Pacific Railway Limited (CP - Free Report) and Allegiant Travel Company (ALGT - Free Report) . These stocks possess the right combination of elements to beat on earnings this reporting cycle.

Schneider National has an Earnings ESP of +2.81% and is Zacks #2 Ranked, presently. The company will release second-quarter 2021 results on Jul 29.

Canadian Pacific has an Earnings ESP of +1.40% and carries a Zacks Rank #3 at present. The company will release second-quarter 2021 results on Jul 28.

Allegiant has an Earnings ESP of +7.01% and is currently a #3 Ranked player. The company will release second-quarter 2021 results on Jul 28.