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The Zacks Transportation sector is widely diversified. It houses airlines, railroads, shipping and trucking companies, to name a few.
Only a handful of transportation companies have reported their first-quarter 2023 numbers so far.
The gradual uptick in the economic scenario implies that trading volumes have been consistently rising. This bodes well for the sector.
However, headwinds like supply-chain woes, inflationary pressure and high fuel costs (a key input cost for any transportation player) are likely to have hurt the first-quarter 2023 performances of the transportation companies.
Economic uncertainty is also likely to have affected the first-quarter performance.
Given this backdrop, investors interested in the Zacks Transportation sector keenly await the results of Old Dominion Freight Line, Inc. (ODFL - Free Report) , Norfolk Southern Corporation (NSC - Free Report) and Westinghouse Air Brake Technologies Corporation operating as Wabtec Corporation (WAB - Free Report) , scheduled to be released on Apr 26.
Our quantitative model predicts an earnings beat for a company if it has a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This combination increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
We expect high operating expenses due to elevated fuel costs to have hurt Old Dominion’s bottom line in the to-be-reported quarter. Revenues are likely to have decreased due to lower revenues from LTL (less-than-truckload) Services. Per our model, revenues from the unit are expected to decline 1.5% from the first-quarter 2022 actuals. We anticipate LTL revenues per shipment to decline 11.1% in the March-end quarter from first-quarter 2022 actuals.
Our proven model does not predict an earnings beat for Old Dominion this season, as ODFL has an Earnings ESP of -0.35% and a Zacks Rank #3 at present. Notably, our model had not predicted a positive surprise for ODFL earlier as well, when its first-quarter earnings preview article was issued. At that time, ODFL had an Earnings ESP of -0.82% and a Zacks Rank #2.
Old Dominion Freight Line, Inc. Price and EPS Surprise
Norfolk Southern’s bottom line is likely to have been dented by high operating expenses. High fuel costs are likely to have resulted in high operating costs. Supply-chain disruptions and slower network velocity are expected to have weighed on volumes in the to-be-reported quarter. Due to high costs, the operating ratio (operating expenses as a percentage of the total revenues) is likely to have deteriorated in the quarter to be reported. On a brighter note, coal revenues are likely to have been impressive.
Our proven model does not conclusively predict an earnings beat for NSC this season as the company has an Earnings ESP of -0.14% and a Zacks Rank #3 at present. Notably, our model had not predicted a positive surprise for NSC earlier as well, when its first-quarter earnings preview article was issued. At that time, NSC had an Earnings ESP of -2.12% and a Zacks Rank #3.
Norfolk Southern Corporation Price and EPS Surprise
Wabtec’s top line is likely to have been aided by higher Freight revenues. Solid growth in Equipment and Services is likely to have driven the segment’s revenues. Transit revenues are anticipated to have declined from the year-ago reported figure. The downside is expected to have resulted from supply-chain disruptions. Also, escalating operating expenses are likely to have weighed on WAB’s bottom line. High fuel costs are anticipated to have resulted in an upsurge in operating costs.
Our proven model does not conclusively predict an earnings beat for WAB this season as the company has an Earnings ESP of -4.59% and a Zacks Rank #2 at present. Notably, our model had not predicted a positive surprise for WAB earlier as well, when its first-quarter earnings preview article was issued. At that time, NSC had an Earnings ESP of 0.00% and a Zacks Rank #2.
Westinghouse Air Brake Technologies Corporation Price and EPS Surprise
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Transportation Stocks' Apr 26 Q1 Earnings Roster : ODFL & More
The Zacks Transportation sector is widely diversified. It houses airlines, railroads, shipping and trucking companies, to name a few.
Only a handful of transportation companies have reported their first-quarter 2023 numbers so far.
The gradual uptick in the economic scenario implies that trading volumes have been consistently rising. This bodes well for the sector.
However, headwinds like supply-chain woes, inflationary pressure and high fuel costs (a key input cost for any transportation player) are likely to have hurt the first-quarter 2023 performances of the transportation companies.
Economic uncertainty is also likely to have affected the first-quarter performance.
Given this backdrop, investors interested in the Zacks Transportation sector keenly await the results of Old Dominion Freight Line, Inc. (ODFL - Free Report) , Norfolk Southern Corporation (NSC - Free Report) and Westinghouse Air Brake Technologies Corporation operating as Wabtec Corporation (WAB - Free Report) , scheduled to be released on Apr 26.
Our quantitative model predicts an earnings beat for a company if it has a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This combination increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Let’s delve deeper.
We expect high operating expenses due to elevated fuel costs to have hurt Old Dominion’s bottom line in the to-be-reported quarter. Revenues are likely to have decreased due to lower revenues from LTL (less-than-truckload) Services. Per our model, revenues from the unit are expected to decline 1.5% from the first-quarter 2022 actuals. We anticipate LTL revenues per shipment to decline 11.1% in the March-end quarter from first-quarter 2022 actuals.
Our proven model does not predict an earnings beat for Old Dominion this season, as ODFL has an Earnings ESP of -0.35% and a Zacks Rank #3 at present. Notably, our model had not predicted a positive surprise for ODFL earlier as well, when its first-quarter earnings preview article was issued. At that time, ODFL had an Earnings ESP of -0.82% and a Zacks Rank #2.
Old Dominion Freight Line, Inc. Price and EPS Surprise
Old Dominion Freight Line, Inc. price-eps-surprise | Old Dominion Freight Line, Inc. Quote
Norfolk Southern’s bottom line is likely to have been dented by high operating expenses. High fuel costs are likely to have resulted in high operating costs. Supply-chain disruptions and slower network velocity are expected to have weighed on volumes in the to-be-reported quarter. Due to high costs, the operating ratio (operating expenses as a percentage of the total revenues) is likely to have deteriorated in the quarter to be reported. On a brighter note, coal revenues are likely to have been impressive.
Our proven model does not conclusively predict an earnings beat for NSC this season as the company has an Earnings ESP of -0.14% and a Zacks Rank #3 at present. Notably, our model had not predicted a positive surprise for NSC earlier as well, when its first-quarter earnings preview article was issued. At that time, NSC had an Earnings ESP of -2.12% and a Zacks Rank #3.
Norfolk Southern Corporation Price and EPS Surprise
Norfolk Southern Corporation price-eps-surprise | Norfolk Southern Corporation Quote
Wabtec’s top line is likely to have been aided by higher Freight revenues. Solid growth in Equipment and Services is likely to have driven the segment’s revenues. Transit revenues are anticipated to have declined from the year-ago reported figure. The downside is expected to have resulted from supply-chain disruptions. Also, escalating operating expenses are likely to have weighed on WAB’s bottom line. High fuel costs are anticipated to have resulted in an upsurge in operating costs.
Our proven model does not conclusively predict an earnings beat for WAB this season as the company has an Earnings ESP of -4.59% and a Zacks Rank #2 at present. Notably, our model had not predicted a positive surprise for WAB earlier as well, when its first-quarter earnings preview article was issued. At that time, NSC had an Earnings ESP of 0.00% and a Zacks Rank #2.
Westinghouse Air Brake Technologies Corporation Price and EPS Surprise
Westinghouse Air Brake Technologies Corporation price-eps-surprise | Westinghouse Air Brake Technologies Corporation Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.