Marten Transport (MRTN) Q4 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

Marten Transport, Ltd. (NASDAQGS:MRTN) is scheduled to report Q4 earnings results on January 23, 2020, after markets close for trading. The company is expected to report earnings of $0.28/share on revenue of $214.7 million.

The consensus earnings per share (EPS) of $0.28/share is based on a poll of 3 analysts and represents a decline of -3.4% over the same quarter last year when the company reported earnings of $0.29/share.

The revenue forecast of $214.7 million based on a poll of 3 analysts implies a year-over-year (YoY) growth of 5.3%. Last year the company reported $204 million in revenue for the quarter.

Expected to report EPS decline of -$0.01/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $214.70 $203.96 5.3%
EPS $0.28 $0.29 -3.4%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters and met expectations 1 quarter.

What are your expectations from Marten Transport for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $0.28 $0.30 7.1% Beat
Q2, 2019 $0.27 $0.28 3.7% Beat
Q1, 2019 $0.24 $0.25 4.2% Beat
Q4, 2018 $0.27 $0.29 7.4% Beat
Q3, 2018 $0.26 $0.27 4.9% Beat
Q2, 2018 $0.22 $0.25 13.6% Beat
Q1, 2018 $0.18 $0.19 2.7% Beat
Q4, 2017 $0.16 $0.16 0.0% Meet

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.

After the last earnings report for the period ending September 30, 2019, the stock price reacted by increasing by 1.9%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-17 $21.18 $21.59 1.9% Increase
2019-07-18 $18.40 $20.23 9.9% Increase
2019-04-16 $18.19 $19.97 9.8% Increase
2019-01-24 $20.10 $19.83 -1.3% Decline

Fundamentals And Technical Analysis

Marten Transport is currently trading at $21.49/share, down -0.7% for the day. The company is trading at approximately 94.3% of its 52-week high of $22.80/share. The company’s stock price is down -0.5% since the last earnings report and down -0.1% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 58.21 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NASDAQGS:MRTN Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 19.4x and a forward P/E multiple of 19.3x. Marten Transport’s current share price also implies a price-to-book (P/B) multiple of 2.0x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $21.49
P/E Ratio 19.4x
P/E Ratio (Fwd) 19.3x
PEG Ratio 5.1
Total Debt to Capital (%) 0.1%
Levered Free Cash Flow -$3.71 million
Enterprise Value / EBITDA 7.1x

Source: Finbox

Company Profile: Marten Transport, Ltd.

Marten Transport, Ltd. is a small-cap stock with a market capitalization of $1.184 billion and a total enterprise value of $1.145 billion. The company operates in the Industrials sector and the Road & Rail industry.

Marten Transport, Ltd. operates as a temperature-sensitive truckload carrier for shippers in the United States, Canada, and Mexico. It operates through four segments: Truckload, Dedicated, Intermodal, and Brokerage.

The Truckload segment transports food and other consumer packaged goods that require a temperature-controlled or insulated environment.

The Dedicated segment offers transportation solutions for individual customers’ requirements using temperature-controlled trailers, dry vans, and other specialized equipment.

The Intermodal segment transports its customers’ freight utilizing its temperature-controlled trailers on railroad flatcars for portions of trips, as well as using tractors and contracted carriers.

The Brokerage segment develops contractual relationships with and arranges for third-party carriers to transport freight for its customers in temperature-controlled trailers and dry vans.

As of December 31, 2018, the company operated a fleet of 2,755 tractors, including 2,709 company-owned tractors and 46 tractors supplied by independent contractors.

Marten Transport, Ltd. was founded in 1946 and is headquartered in Mondovi, Wisconsin.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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