Posted by JM on July 26, 2021
Here is an excerpt from TFI International’s (TFII) recent quarterly earnings release July 26, 2021.
Earnings Report:
Q2 2021 Estimate: 0.96
Q2 2021 Actual: 1.44
Q3 2021 Estimate: 1.10
TFI International (TFII.TO) edged up in after-hours New York trading after the company on Monday said its second-quarter profit rose five-fold as revenue more than doubled following its acquisition of United Parcel Service’s (UPS) freight business, and topped analysts’ estimates for the measure by half.
Revenue rose to US$1.65 billion from US$740.1 million.
The gains follow on TFI’s US$800-million acquisition of the UPS Freight, truckload and less than truckload business at the end of April.
“The second quarter was historically significant for TFI International, with the closing of our UPS Freight acquisition and record performance across the board. With all four of our business segments reaching new heights, it is increasingly clear that our strategy to navigate the unprecedented events of the past year has created a platform for growth and profitability that is the strongest in our company’s history,” chief executive Alain Bedard said in a release.
TFI did not update its guidance in the release.
Source: MT Newswires
TFI International (TFII) first came across our radar a few years ago while I was still working in the tech services sector. They were acquiring trucking companies we supported and integrating them quickly onto their platform. Although we ended up losing a few customers because of them I was impressed at how quickly they acquired and integrated new acquisitions. Last year TFII reached the milestone of ten consecutive years of paying a growing dividend, so I decided to dig a little deeper into the fundamentals. Double digit annual earnings growth since 2011 and a Total Annual Return of 18.3% quickly caught my attention. I was shocked to discover that the company was also reasonably priced in the range of its historical P/E. Always looking for the next good Canadian dividend grower that is sensibly priced for our portfolios, I bought a starting position in September 2020. Today TFII is up significantly from our purchase price a year ago and still growing earnings and acquiring companies.
