Factors Likely to Shape Radiant Logistics' (RLGT) Q3 Earnings

Radiant Logistics RLGT is scheduled to release its third-quarter fiscal 2019 financial numbers on May 9, after market close. The Zacks Consensus Estimate for earnings and revenues is pegged at 8 cents and $234.84 million, respectively.

In the last reported quarter, this transportation company surpassed the consensus mark by 4 cents. Results were aided by higher revenues at the U.S. and Canada segments. However, operating expenses increased in the same period due to a rise in fuel costs.

As far as earnings surprise is concerned, the company seems to be on a firm footing, having outpaced the Zacks Consensus Estimate in each of the trailing four quarters as the chart below shows.

Radiant Logistics, Inc. Price and EPS Surprise

 

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

Investors are keeping their fingers crossed and hoping that Radiant Logistics will deliver a solid performance and surpass the earnings estimate in the soon-to-be-reported quarter as well. However, our model indicates that the company might not beat on earnings in third-quarter fiscal 2019.

This is because a stock needs to have — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Radiant Logistics has an Earnings ESP of 0.00%. The Most Accurate Estimate is in line with the Zacks Consensus Estimate.

Zacks Rank: Radiant Logistics carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Let’s delve deep and find out the factors likely to impact Radiant Logistics’quarterly results.

As in the past few quarters, we expect the company’s U.S. segment to perform impressively. This, in turn, will aid the top line as bulk of the revenues is generated from the U.S. segment. Within the U.S. segment, transportation and value added services are anticipated to realize solid net revenues in the soon-to-be-reported quarter.

International revenues from Canada are also anticipated to be strong in the quarter-to-be-reported. Furthermore, the company is anticipated to generate robust cash flows backed by impressive segmental results.

However, high operating expenses are expected to limit bottom-line growth. Increased cost of transportation and other services are anticipated to result in high operating expenses.

Upcoming Releases

Investors interested in the broader Zacks Transportation sector are keenly awaiting the first-quarter 2019 earnings report of Hertz Global Holdings HTZ and Copa Holdings CPA on May 6 and 8, respectively.

Key Pick

Investors interested in transportation sector may consider Ship Finance International Limited SFL as it possesses the right combination of elements to beat on earnings in its next quarterly release.

Ship Finance has an Earnings ESP of +7.69% and a Zacks Rank of 1.

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