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Will Truck Stocks USAK & CGI Earnings Disappoint on Aug 3?


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The transportation sector is highly diversified in nature, comprising airline players, truckers, railroads, shippers, to name a few. The sector (one of the 16 Zacks sectors) is grappling with a number of headwinds like the upsurge in terror attacks, the Brexit vote and declining coal shipments.

In the wake of such adversities, the sector is expected to end Q2 with an earnings growth rate of -12.5% on a year-over-year basis, according to our latest Earnings trends report. The top line is projected to shrink 1.3%.

Most of the subgroups in the transportation sector have bearish Zacks Industry ranks in view of the above headwinds. The subgroup which comprises truckers is no exception as reflected by the Zacks Industry rank of 254 (out of 260+ industries) for the Transportation-Truck unit.

Trucking companies have been plagued by driver shortages for quite some time. In the ongoing earnings season as well, key players in the space like Forward Air Corporation FWRD and P.A.M. Transportation Services, Inc. PTSI reported lower-than-expected earnings.

Investors interested in the trucking sub-group keenly await reports from USA Truck, Inc.USAK and Celadon Group Inc.CGI to find out whether they can reverse the trend.

USA Truck, a provider of comprehensive capacity solutions to a broad and diverse customer base throughout North America, will report its second-quarter 2016 results on Aug 3. Things look rather gloomy for the company this earnings season. According to our quantitative model, a company needs the right combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - to increase the odds of an earnings surprise. However, USA Truck has an Earnings ESP of 0.00% as the Most Accurate estimate is in line with the Zacks Consensus Estimate of 21 cents. The company has a Zacks Rank #5 (Strong Sell). As it is, we caution against Sell-rated stocks going into the earnings announcement.

USA TRUCK INC Price and EPS Surprise

USA TRUCK INC Price and EPS Surprise | USA TRUCK INC Quote



Celadon Group offers transportation services in countries including the U.S., Canada and Mexico. The company has an Earnings ESP of -15.00% as the Most Accurate estimate lags the Zacks Consensus Estimate of 20 cents by 3 cents. The company has a Zacks Rank #5. The unfavorable combination makes an earnings beat unlikely for the fourth quarter of fiscal 2016. Results are expected to be revealed on Aug 3.

CELADON GROUP Price and EPS Surprise

CELADON GROUP Price and EPS Surprise | CELADON GROUP Quote



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FORWARD AIR CRP (FWRD): Free Stock Analysis Report

CELADON GROUP (CGI): Free Stock Analysis Report

PAM TRANSPORT (PTSI): Free Stock Analysis Report

USA TRUCK INC (USAK): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Business , Investing , Earnings , Stocks
Referenced Symbols: FWRD , PTSI , USAK



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