Heartland Express Earnings Miss Partly Related To Recent Acquisition
The weaker operating environment provided Heartland Express Inc. (NASDAQ: HTLD ) an opportunity to acquire a $150 million peer . However, that company, Millis Transfer, which operated at a 90%-plus operating ratio (OR) prior to the deal, weighed on Heartland Express' fourth-quarter 2019 results. The Iowa-based truckload (TL) carrier reported fourth-quarter 2019 earnings of $0.16 per share, well below the consensus estimate of $0.23 and the prior year's $0.27. "During the fourth quarter, operating revenues were improved, while net income, basic earnings per share and operating ratio results were negatively impacted by the inclusion of the financial results of Millis Transfer following the acquisition and market dynamics," a press release said. For the fourth quarter 2019, the carrier reported a 13.8% year-over-year increase in revenue in large part due to the August acquisition. However, the company reported a 40% decline in operating income with an adjusted OR of 87.9%, 1,120 basis points worse year-over-year.
Heartland Express Earnings Miss Partly Related To Recent Acquisition
The weaker operating environment provided Heartland Express Inc. (NASDAQ: HTLD ) an opportunity to acquire a $150 million peer . However, that company, Millis Transfer, which operated at a 90%-plus operating ratio (OR) prior to the deal, weighed on Heartland Express' fourth-quarter 2019 results. The Iowa-based truckload (TL) carrier reported fourth-quarter 2019 earnings of $0.16 per share, well below the consensus estimate of $0.23 and the prior year's $0.27. "During the fourth quarter, operating revenues were improved, while net income, basic earnings per share and operating ratio results were negatively impacted by the inclusion of the financial results of Millis Transfer following the acquisition and market dynamics," a press release said. For the fourth quarter 2019, the carrier reported a 13.8% year-over-year increase in revenue in large part due to the August acquisition. However, the company reported a 40% decline in operating income with an adjusted OR of 87.9%, 1,120 basis points worse year-over-year.