Buys RRTS $7.05

Roadrunner Transportation misses by $0.10, misses on revs; lowers guidance for FY16 EPS, below consensus  (10.25 -1.19)
5/4/2016, 4:30:38 PM ET
  • Reports Q1 (Mar) earnings of $0.13 per share, excluding non-recurring items, $0.10 worse than the Capital IQ Consensus of $0.23; revenues fell 4.8% year/year to $465.6 mln vs the $470.55 mln Capital IQ Consensus.
    • Co lowers guidance for FY16, sees EPS of $1.10-1.25, excluding non-recurring items, vs. $1.31 Capital IQ Consensus Estimate, down from $1.30-1.45
    • Commenting on guidance for 2016, Peter Armbruster, CFO of Roadrunner, said, “Due to margin reductions in our OEM ground and air expedite business and declining rates across most end markets, we expect to achieve EBITDA, excluding downsizing costs of ~$6.0 million, in the range of $130-140 million for 2016 and anticipate diluted earnings per share available to common stockholders, excluding the impact of downsizing costs of ~$0.10, to be in the range of $1.10-1.25 for 2016.
    • Courtesy of Briefing.com


On 1/20/2016 (the low of the markets) RRTS had a low of $6.39 and then bounced to a high of $13.67 on 3/18/2016.

I was expecting a match of the $6.39 this morning but there were tons of buyers at $7.00 but it could still go to the $6.39.

With trailing earnings of $1.02 last year and projected earnings of $1.10 to$1.25 that leaves us with a forward P/E of 6.4. The transport ETF, IYT has a P/E of 14 which puts RRTS in play.

No stops on this one.

Targets are $12.50 and then $13.50

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