U.S. Xpress Enterprises (USX) Tops Q4 EPS by 1c, Revenues Miss

U.S. Xpress Enterprises (NYSE: USX) reported Q4 EPS of $0.39, $0.01 better than the analyst estimate of $0.38. Revenue for the quarter came in at $469.2 million versus the consensus estimate of $481.68 million.

• Operating revenue of $469.2 million, an increase of 8.8% compared to the fourth quarter of 2017
• Operating income of $21.1 million compared to $12.5 million reported in the fourth quarter of 2017
• Operating ratio of 95.5%, a 160 basis point improvement compared to the fourth quarter of 2017
• Adjusted operating ratio1, a non-GAAP measure, of 92.5%, a 280 basis point improvement compared to the fourth quarter of 2017
• Net income attributable to controlling interest of $7.0 million, or $0.14 per diluted share, compared to $9.5 million in the fourth quarter of 2017
• Adjusted net income attributable to controlling interest1, a non-GAAP measure, of $19.5 million, or $0.39 per diluted share, compared to $0.9 million in the fourth quarter of 2017

Mr. Fuller commented on the Company's outlook: "For 2019, we continue to expect to achieve four quarters of year over year adjusted operating ratio improvement with a targeted full year adjusted operating ratio of 93.0%.”

"From a revenue perspective, we anticipate moderate economic growth and a more balanced relationship of freight demand and available truckload capacity. In this environment, we anticipate holding our asset based fleet size approximately even and optimizing our consolidated revenue base over our Truckload and Brokerage capacity. For the full year, we expect mid-single digit rate increases in our Truckload segment based on a combination of contract rate increases and network management, partially offset by a less robust spot market, which represents approximately 10% of our revenues. In our Brokerage segment, we anticipate flattening revenue due to a combination of tougher comparisons, rate pressure, and an emphasis on Truckload selection of available loads.”

"Outside of market forces, we see multiple Company-specific opportunities. We expect to realize in 2019 at least 50% of the expected $10 million of annualized benefits from exiting our fixed cost investment in the Mexico cross-border business market and reallocating our north of the border capacity. In addition, new tractor technology and internal initiatives afford us opportunities in the areas of safety, maintenance, and fuel savings. We also continue to examine new ways to use technology to increase revenue and lower our costs."

For earnings history and earnings-related data on U.S. Xpress Enterprises (USX) click here.

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