Universal Logistics Holdings, Inc. (ULH) Reports In-Line Q3 EPS, Revenues Beat
Universal Logistics Holdings, Inc. (NASDAQ: ULH) reported Q3 EPS of $0.50, in-line with the analyst estimate of $0.50. Revenue for the quarter came in at $365 million versus the consensus estimate of $327.5 million.
"The rapid recovery of North American automotive production was a primary driver behind Universal's solid performance in the third quarter 2020," stated Tim Phillips, Universal's Chief Executive Officer. "We are confident this rebound has quite a bit of runway, particularly in the light-truck and SUV markets. The continued strength in this space provides the foundation for our dedicated transportation and value-added service businesses, and we expect to build upon this success by launching several new logistics wins over the next few quarters.
"Our intermodal franchise is also producing solid results. We experienced robust activity during the quarter and are most recently seeing a resurgence of imports on the West coast. Although port congestion and a slower-than-anticipated rate of trucks returning to work has caused some pockets to underperform, we have a substantial opportunity to leverage our resources and capitalize on the recovery we are seeing on the West coast.
"Truckload continues to perform well, albeit on lower volumes. A favorable rate environment and disciplined cost control kept third quarter performance in-line with our margin targets. While beneficial from a rate perspective, tight truckload capacity adversely impacted our company-managed brokerage business in the third quarter. As we continued to work through our book of business, rationalizing both lanes and customers, persistent margin pressure throughout the quarter led to underperformance in this service line.
"I firmly believe that we are well under way on the road to economic recovery. This confidence is further evidenced by the Board's decision to reinstate Universal's regular quarterly dividend. We have faced many obstacles this year, and I am proud of the way this organization has overcome each and every one. I look forward to rounding out a successful 2020, and excited for the year to come."
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