TFI International Posts Better-Than-Expected Results In 1Q

TFI International (TFII) reported its first-quarter financial results on April 27 after market close. The transport and logistics company posted higher revenue and profit.

TFI International’s revenue came in at $1.15 billion for the quarter ended March 31, an increase of 24% from $0.92 billion in the prior-year quarter. Operating income increased 17% to $101.7 million from $87.3 million in 1Q 2020.

Meanwhile, diluted EPS was $0.70 in 1Q 2021, an improvement from $0.65 in 1Q 2020. TFI International reported adjusted diluted EPS of $0.77, up from $0.61 in the prior-year period. Both revenue and EPS beat expectations by a wide margin. Indeed, according to the Zacks Consensus Estimate, TFI International was expected to post quarterly EPS of $0.68 and revenue of $923.6 million.

Continuing operating activities generated net cash of $155.2 million in the first quarter, compared to $137.2 million for the same quarter last year. (See TFI International stock analysis on TipRanks.)

TFI International’s Chairman, President, and CEO Alain Bédard said: “As we gain perspective on the events of 2020, it is increasingly clear that TFI International has emerged even stronger, through our relentless focus on the fundamentals, now combined with our transformative upcoming acquisition of UPS Freight. As a company, we are exceptionally well-positioned to capitalize on the ongoing economic recovery to generate strong cash flow that we can put toward strategically expanding our business in our quest to create further shareholder value.”

Last week, TD Securities analyst Tim James reiterated a Buy rating on the stock with a $92.74 (C$115.00) price target (15% upside potential).

Overall, the consensus on the Street is that TFII is a Strong Buy based on 10 Buys and 1 Hold. The average analyst price target of C$111.77 implies an upside potential of about 11.8% to current levels. Shares have jumped by more than 50% since the start of the year.