Quality Distribution Reports 4Q Earnings In-Line With Pre-Announcement, Sterne Agee Maintains Buy Rating

Sterne Agee has published a research report on Quality Distribution QLTY after the company reported 4Q earnings that were in-line with the company's pre-announcement.

In the report, Sterne Agee writes "Revenue rose 10% YoY to $166m, which was $3 million above our expectations. Growth was strong in both the Transportation (up 4%) and Container Services (up 30%) divisions. Volume growth was driven by a 5% increase in loads and a 6% increase in miles driven. On the 10% topline growth, Operating Income (adjusted for the $735k of costs associated with the stock offering) grew 30% to $11m, which was in-line with our forecast. QLTY generated an Adjusted Operating Margin of 6.6%, which was up 100 bps YoY but 20 bps below our estimate. Incremental margins were 17%, lower than 3Q's 21% and our estimate of 22% estimate, but we note to investors that the company incurred higher G&A costs related to refinancing and executive hires."

Sterne Agee maintains its Buy rating and $15 price target.

Quality Distribution closed yesterday at $10.58.