Roadrunner Transportation Systems Inc (RRTS) Shares Soar on Fourth Quarter, Year-end Results and 2016 Guidance


Roadrunner Transportation Systems Inc (NYSE:RRTS) shares are trading up huge today after the company announced both their fourth quarter and full-year results as well as their 2016 guidance. Revenues for the quarter decreased year-over-year by 7.8% to $490.9 million. Diluted EPS, however, matched last years number of $0.32 per share.

Revenues for the year came in at 1.99 billion, which is an increase year-over-year of 6.5%.

“For the quarter ended December 31, 2015, consolidated revenue decreased 7.8%, or $41.6 million, primarily due to the decline in freight volumes across most end markets, net of new business, and the decrease in fuel surcharge revenue, which impacted revenue by $33.3 million quarter-over-quarter,” CEO Mark DiBlasi explained. “Despite economic headwinds, our operating ratio improved from 95.5 in the fourth quarter of 2014 to 95.1 in the fourth quarter 2015, which resulted in a slight increase in operating income quarter-over-quarter. Furthermore, EBITDA increased $1.2 million to $33.7 million in the fourth quarter of 2015.”

As for the company’s 2016 guidance, they expect EBITDA to come in at between $140 million to $150 million for the year, and diluted earnings per share to be between $1.30 to $1.45 per share.

The stock is up 35.71% or $2.81 following the news, hitting $10.68 per share. About 1.68M shares traded hands or up 337.75% from the average. RRTS has declined 69.50% since June 30, 2015 and is currently downtrending. It has underperformed the S&P500 by 62.20%.

From a total of 6 analysts covering Roadrunner Transportation (NYSE:RRTS) stock, 1 rate it a “Buy”, 0 a “Sell”, and 5 a “Hold”. This means that 17% of the ratings are positive. The highest target price is $31 while the lowest target price is $12. The mean of all analyst targets is $15.33 which is 43.54% above today’s ($10.68) stock price. Roadrunner Transportation was the topic of 9 analyst reports since October 13, 2015 according to the firm StockzIntelligence Inc. William Blair downgraded shares on January 13 to a “Market Perform” rating. Macquarie Research maintained RRTS stock in a recent report from October 28 with a “Neutral” rating. Finally, Raymond James downgraded the stock to a “Market Perform” rating in a report they issued on an October 27.

The institutional sentiment increased to 1.79 in Q2 2015. It’s up 0.66, from 1.13 in 2015Q2. The ratio improved, as 8 funds sold all their Roadrunner Transportation Systems Inc shares they owned while 34 reduced their positions. 19 funds bought stakes while 56 increased their total positions. Institutions now own 28.21 million shares which is 1.89% less than the previous share count of 28.76 million in 2015Q2.

Dsc Advisors L.P. holds 6.37% of its total portfolio in Roadrunner Transportation Systems Inc, equating to 713,330 shares. Grandeur Peak Global Advisors Llc owns 1.05 million shares representing 4.3% of their total US portfolio. Moreover, Summit Creek Advisors Llc has 2.59% of their total portfolio invested in the company, equating to 866,158 shares. The Illinois-based Cloud Gate Capital Llc has a total of 2.4% of their portfolio invested in the stock. Cardinal Capital Management Llc Ct, a Connecticut-based fund reported 1.89 million shares owned.

Since August 11, 2015, the stock had 0 insider buys, and 2 insider sales for a total of $97.36 million in net activity. Rued Scott D sold 2.00M shares worth $48.68M. Thayer Equity Investors V Lp sold 2.00M shares worth $48.68M.

Roadrunner Transportation Systems, Inc. is an asset-light transportation and logistics service well-known provider offering a suite of solutions, including truckload logistics, customized and expedited less-than-truckload, transportation management solutions, intermodal solutions (transporting a shipment by more than one mode, primarily via rail and truck), freight consolidation, inventory management, on-demand expedited services, international freight forwarding, customs brokerage and global supply chain solutions. The company has a market cap of $306.61 million.