Saia Surprises with Q4 Revenue, Stock Gains
Key Highlights:
* Revenue: $789 million, beating estimates by 1.5% and up 5% YoY.
* EPS: $2.84, surpassing expectations by 2.6%.
* Operating Margin: 12.9%, down from 15% last year.
* Free Cash Flow: -$3.52 million, a decrease from $62.91 million in Q4 2023.
* Sales Volumes: Increased by 10.1% YoY.
* Market Capitalization: $12.73 billion.
Company Overview:
Saia (NASDAQ: SAIA) provides freight transportation solutions, focusing on ground transportation. The industry faces challenges due to economic cycles and fluctuating fuel costs. Despite these factors, Saia has sustained an impressive 12.4% compounded annual growth rate in sales over the past five years.
Revenue Growth:
* Revenue grew by 5% YoY in Q4, exceeding the average for the industrials sector.
* Analysts project 8.5% revenue growth over the next 12 months.
Operating Performance:
* Saia maintains an efficient operation with an average operating margin of 14.8% over the past five years.
* In Q4, operating margin decreased to 12.9% due to higher expenses.
Earnings per Share (EPS):
* EPS has grown at a 25.7% compounded annual rate over the past five years.
* In Q4, EPS fell YoY to $2.84 but beat estimates by 2.6%.
* Wall Street projects a 14.2% increase in EPS over the next 12 months.
Key Takeaways:
* Strong sales volume growth and EPS beat in Q4.
* Ongoing focus on operational excellence.
* Solid long-term fundamentals with sustained revenue growth.
Investment Considerations:
While Saia's recent performance is promising, it's crucial to assess its valuation and longer-term prospects before making an investment decision.