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Transport Stocks Feb 21 Earnings Lineup: WAB, XPO, MATX

The Q4 earnings season is in its last leg with most companies already having reported their financial results. In fact, the picture that has emerged is an extremely rosy one. The current reporting cycle is well poised to be the second consecutive quarter to end with earnings growth after five consecutive quarters of earnings contraction. According to our latest Earnings Preview report, the S&P 500 Index is poised to end Q4 with the bottom line expanding 7.4%.

So far, 411 S&P 500 members, representing 88.4% in terms of market capitalization, have unveiled their numbers. The top and bottom line have expanded 4.9% and 8%, respectively. Now, the current week will see another 49 S&P 500 players revealing their quarterly numbers.

With the overall picture so optimistic, it is of little wonder that currently 13 of the 16 Zacks sectors are exhibiting earnings growth. Unfortunately, the widely-diversified transportation sector does not share the same conditions.

As of Feb 17, 2017, 93.3% of the transportation S&P 500 companies (accounting for 97.9% in terms of market capitalization) unveiled their latest quarterly numbers and their bottom line for these companies has declined 18.4%. In fact, we have already seen players like United Continental Holdings UAL , Ryder System R and Kansas City Southern KSU reporting significant year-over-year bottom-line decline in Q4.

Increasing labor costs have hurt the bottom line for most of the sector participants, particularly airlines. Nonetheless, the picture with respect to revenues is much better for the sector, having expanded 5.3%.

Given this backdrop, investors interested in the transportation space will keenly await the Q4 reports from sector participants like Westinghouse Air Brake Technologies CorporationWAB , XPO Logistics, Inc. XPO and Matson, Inc.MATX scheduled for Feb 21.

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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Westinghouse Air Brake Technologies Corporation , based in Wilmerding, PA, is a supplier of value-added, technology-based products and services for rail, transit and other global industries. This transportation company s a Zacks Rank #2 (Buy). However, its Earnings ESP of 0.00% (both the Most Accurate estimate and the Zacks Consensus Estimate stand at 94 cents per share) complicates our surprise prediction.

Westinghouse Air Brake Technologies Corporation Price and EPS Surprise

Westinghouse Air Brake Technologies Corporation Price and EPS Surprise | Westinghouse Air Brake Technologies Corporation Quote

XPO Logistics, Inc., based inBuchanan, MI, is a third-party logistics provider offering expedient, single-source solutions for time-critical and service-sensitive shipments through its non-asset based transportation network. The company, formerly known as Express-1 Expedited Solutions, Inc., also carries a Zacks Rank #2. However, its Earnings ESP of 0.00% (both the Most Accurate estimate and the Zacks Consensus Estimate stand at 20 cents per share) complicates our surprise prediction. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

XPO Logistics, Inc. Price and EPS Surprise

XPO Logistics, Inc. Price and EPS Surprise | XPO Logistics, Inc. Quote

Matson, Inc. , operates as an ocean transportation and logistics company. The company carries a Zacks Rank #3. Nevertheless, its Earnings ESP of 0.00% (both the Most Accurate estimate and the Zacks Consensus Estimate stand at 46 cents per share) complicates our surprise prediction.

Matson, Inc. Price and EPS Surprise

Matson, Inc. Price and EPS Surprise | Matson, Inc. Quote

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Ryder System, Inc. (R): Free Stock Analysis Report

Westinghouse Air Brake Technologies Corporation (WAB): Free Stock Analysis Report

Kansas City Southern (KSU): Free Stock Analysis Report

XPO Logistics, Inc. (XPO): Free Stock Analysis Report

United Continental Holdings, Inc. (UAL): Free Stock Analysis Report

Matson, Inc. (MATX): 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.


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

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