Why Did Daseke Stock Gain 12% Today?

Daseke Inc DSKE reported second-quarter sales growth of 14.9% year-over-year to $404 million, and +18% Y/Y excluding the Aveda Transportation and Energy Services business's impact, beating the consensus estimate of $369.45 million.

  • Adjusted EPS improved to $0.42 from $0.13 in 2Q20, beating consensus estimates of $0.09.
  • Adjusted EBITDA was $62.9 million, compared to $43.7 million in 2Q20, and margin expanded by 470 bps to 17.1 %.
  • The operating income increased to $45.3 million from $12.3 million, and the margin expanded by 770 bps to 11.2%.
  • Daseke generated cash from operating activities year-to-date of $58.1 million, compared to $82.9 million a year ago. Free cash flow of $66.7 million.
  • The operating ratio was 88.8%, and the adjusted operating ratio of 88%, compared to 96.5% and 94.5%.
  • Daseke had total available liquidity of $231 million, with cash and cash equivalents of $111.7 million and $119.3 million available under its revolving credit facility. Net debt was $482.7 million.
  • FY21 Outlook: Daseke expects revenue of $1.5 billion to $1.6 billion, up 6.9% from the previous range, and an Adjusted EBITDA of $200 million to $210 million, up 20.6% of the prior.
  • Additionally, the company appointed Jonathan Shepko as permanent Chief Executive Officer, effective immediately. He had formerly served as interim Chief Executive Officer since January 2021 and served Daseke as a director since 2017 and a board observer since 2014.
  • Price action: DSKE shares closed higher by 11.80% at $7.97 on Tuesday.

Posted In: BriefsEarningsNewsGuidanceSmall Cap

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