TFI International (TSE: TFII) reported a strong increase in revenues and profits in the fourth quarter thanks to soaring trucking demand. TFI is Canada’s largest publicly traded trucking company.
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Revenue & Earnings
Revenue came in at $2.14 billion for the quarter ended December 31, an increase of 90.8% from $1.12 billion in the prior-year quarter. Operating income increased 83.6% to $215 million from $117.1 million in Q4 2020.
Diluted EPS was $1.52 in Q4 2021, an improvement from $0.91 in Q4 2020. TFI reported adjusted diluted EPS of $1.57, up from $0.98 in the prior-year period.
Net cash from continuing operating activities was $190.3 million in the fourth quarter, compared to $164.9 million for the same quarter last year.
CEO Commentary
TFI’s Chairman, president, and CEO Alain Bédard said, “TFI International completed a highly successful year that featured our transformational acquisition of UPS Ground Freight, which is already helping to drive our robust financial results reported today. During the fourth quarter, our operating income grew 84% and our adjusted diluted EPS grew 60%. It is gratifying to see all our business segments delivering year-over-year growth in revenues and operating income, on the tremendous efforts of our thousands of talented team members.
“By focusing through the pandemic on our longstanding operating principles that emphasize efficiency, strong cash flow, and the strategic allocation of capital, we have entered the new year stronger than ever.”
Wall Street’s Take
On February 1, Scotiabank analyst Konark Gupta kept a Buy rating on TFII and lowered its price target to C$150 (from C$155). This implies 17.2% upside potential.
Overall, consensus on the Street is that TFII is a Moderate Buy based on five Buys and two Holds. The average TFI International price target of C$163.60 implies upside potential of about 27.9% to current levels.
TipRanks’ Smart Score
TFII scores a 7 out of 10 on TipRanks’ Smart Score rating system, indicating that its stock is likely to perform in line with the overall market.
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