After market close today, TFI International (TSE:TFII) (NYSE:TFII), a leading North American transportation and logistics firm, reported its Q1-2023 earnings results, which missed both revenue and earnings-per-share (EPS) expectations. As a result, the stock is more than 4% lower in the after-hours trading session. Please note that all figures are in U.S. dollars unless otherwise stated.
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TFI’s revenue reached $1.85 billion, less than analysts’ expectations of $1.95 billion and also coming in lower than last year’s revenue figure of $2.19 billion. Further, adjusted diluted EPS was at $1.33, falling short of the expected $1.47 and last year’s EPS of $1.68.
TFI’s operating income in the first quarter was $166.4 million, a decrease from the $219.8 million seen in Q1 2022. The decline can be attributed to reduced freight volumes, non-recurring costs such as severance and early retirement buyouts, and IT transition expenses in the US Less-Than-Truckload segment. Additionally, an unfavorable currency translation impact of $6.2 million and the divestiture of CFI, which contributed $17.4 million in operating income during the same period last year, impacted results.
In terms of segment performance, all segments experienced a decline in total revenue compared to the prior year. Despite these headwinds, the company experienced 69% growth in net cash from operating activities, with free cash flow more than doubling to $195.7 million.
Is TFII Stock a Buy, According to Analysts?
According to analysts, TFII stock comes in as a Strong Buy based on 14 Buys and two Holds assigned in the past three months. The average TFII stock price target of C$179.72 implies 14.6% upside potential.
