These Analysts Slash Their Forecasts On TFI International Following Downbeat Q3 Results

After the closing bell on Monday, TFI International TFII reported weaker-than-expected earnings for the third quarter.

The company posted quarterly earnings of $1.60 per share which missed the analyst consensus estimate of $1.78 per share. The company reported quarterly sales of $2.18 billion which missed the analyst consensus estimate of $2.25 billion.

TFI International raised its quarterly dividend by 13% from 49 cents to 45 cents per share.

“Despite soft market conditions, TFI International performed well during quarter, generating more than $350 million of net cash from operating activities and over $270 million of free cash flow, up 26% and 37%, respectively, over the year-ago period,” said Alain Bédard, Chairman, President and Chief Executive Officer. “While business conditions for US LTL are challenging, our Logistics segment performed very well, and both our Truckload and Canadian LTL operations have remained solid. We were also able to reduce debt during the quarter, reducing our leverage ratio. In the current freight environment, our talented team remains focused on operational enhancements and tapping into the potential of recent acquisitions, while our overarching focus on free cash flow allows us to opportunistically invest during weaker cycles and return significant capital to shareholders while maintaining a strong balance sheet.”

TFI International shares fell 1.8% to trade at $133.49 on Wednesday.

These analysts made changes to their price targets on TFI International following earnings announcement.

• Stifel analyst J. Bruce Chan downgraded TFI International from Buy to Hold and lowered the price target from $158 to $142.
• Susquehanna analyst Bascome Majors maintained the stock with a Positive and lowered the price target from $180 to $170.
• RBC Capital analyst Walter Spracklin maintained TFI International with an Outperform and lowered the price target from $167 to $160.
• JP Morgan analyst Brian Ossenbeck maintained the stock with an Overweight and lowered the price target from $181 to $178.

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