Marten Transport Sees Sequential Improvement in Q4 Earnings
After a tumultuous year, refrigerated carrier Marten Transport has finally seen a turnaround in its earnings. The company reported a sequential improvement in truckload trends during the 2024 fourth quarter, marking a positive shift since the second quarter of 2022.
Earnings Per Share Beat Consensus Estimate
Marten Transport (NASDAQ: MRTN) announced earnings per share of 7 cents on Monday, surpassing the consensus estimate by 1 cent. Although this figure is 8 cents lower than the same period last year, it’s a step in the right direction. The company’s net earnings per share in the third quarter were 5 cents.
Consolidated Revenue Takes a Hit
The company’s consolidated revenue of $230.4 million was 14.1% lower year over year, with all business segments experiencing declines. Fuel surcharge revenue, in particular, took a 29% hit. However, Marten’s truckload unit showed resilience, reporting a 2.5% year-over-year revenue decline (excluding fuel surcharges).
Truckload Unit Returns to Profitability
The truckload unit’s average tractors in service fell 3.5%, but a 1.1% increase in revenue per tractor per week helped offset this decline. Revenue per loaded mile (excluding fuel) dipped 2.8% year over year but remained steady with the third quarter at $2.70. The segment’s operating ratio (excluding fuel surcharges) improved to 98%, marking a return to profitability.
Dedicated Unit Faces Challenges
The dedicated unit saw revenue fall 16.4% year over year (excluding fuel), largely due to a 15.2% decline in average tractors in use and a 1.4% drop in revenue per tractor per week. However, the unit’s operating ratio (excluding fuel) improved to 93.7%, a 140-basis-point increase from the previous quarter.
Brokerage and Intermodal Segments Struggle
Brokerage revenue fell 17% year over year, driven by an 8% decline in loads and a 10% drop in revenue per load. The intermodal segment reported an operating loss of $1.5 million, similar to the previous quarter’s loss.
Executive Chairman’s Outlook
Marten Executive Chairman Randy Marten emphasized the company’s focus on minimizing the freight market’s impact on operations while investing in profitable organic growth opportunities. “We’re positioning our operations to capitalize on fair compensation for our premium services across each of our business operations as the market moves toward equilibrium,” he stated.
Shares React to Earnings Report
Shares of MRTN were down 0.3% in after-hours trading on Monday, likely due to the mixed bag of results. Despite this, Marten Transport’s sequential improvement in earnings is a promising sign for the company’s future.
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