Heartland Express Reports Mixed Q3 Results

Heartland Express Reports Mixed Q3 Results
  • Heartland Express, Inc. HTLD reported a third-quarter FY21 revenue decline of 6% year-over-year to $152.61 million, missing the consensus of $159.41 million.
  • EPS improved to $0.31 from $0.25 in 3Q20, above the consensus of $0.30.
  • The operating income increased by 21.7% Y/Y to $33.27 million, and the margin expanded by 496 bps to 21.8%.
  • The company posted an operating ratio of 78.2%, adjusted basis operating ratio of 75%, net margin of 16%, versus 83.2%, 81.5%, and 12.8%, respectively, in the 3Q20.
  • Heartland Express' net cash flows from operations year-to-date were $95.7 million, 20.8% of operating revenue.
  • The average age of the tractor fleet was 1.7 years as of September 30, 2021, and the average age of the company's trailer fleet was 3.3 years.
  • The company currently anticipates a total of ~$15 million - $20 million in net capital expenditures for the remainder of the calendar year 2021.
  • Heartland Express has $180.4 million in cash and equivalents as of September 30, 2021.
  • "Freight demand has continued to be strong and has reached unprecedented levels throughout the third quarter of 2021 and we expect these trends to continue for the remainder of 2021 and well into 2022," said CEO Mike Gerdin. 
  • Price Action: HTLD shares are trading higher by 3.01% at $16.78 on the last check Thursday.

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