U.S. Xpress Q3 Earnings: Buying Soaring NYSE:USX Stock Before Call?

in EARNINGS/INVESTING IDEAS by

U.S. Xpress Enterprises, Inc. (NYSE:USX) is scheduled to report Q3 earnings results after markets close for trading on October 22, 2020.

The company is expected to report earnings of $0.23/share on revenue of $445.4 million. The consensus earnings per share (EPS) of $0.23/share is based on a poll of 6 analysts and represents a growth in eps of 852.5% over the same quarter last year, when the company reported earnings of -$0.03/share.

The revenue forecast of $445.4 million based on a poll of 4 analysts implies a year-over-year (YoY) growth in revenue of 3.9%. Last year the company reported $428.5 million in revenue for the quarter.

Expected to report EPS of $0.23/share for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $445.35 $428.50 3.9%
EPS $0.23 -$0.03 852.5%

Earnings Call Trends

Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, and missed expectations 4 quarters.

What are your expectations from U.S. Xpress Enterprises, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 -$0.14 $0.18 233.2% Beat
Q1, 2020 -$0.16 -$0.15 5.0% Beat
Q4, 2019 -$0.09 -$0.05 44.4% Beat
Q3, 2019 $0.06 -$0.03 −150.4% Missed
Q2, 2019 $0.12 $0.06 −49.1% Missed
Q1, 2019 $0.18 $0.15 −15.3% Missed
Q4, 2018 $0.36 $0.39 7.3% Beat
Q3, 2018 $0.36 $0.33 −9.0% Missed

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 June 30, 2020, the stock price reacted by increasing 25.2%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 28, 2020 $7.01 $8.78 25.2% Increase
April 30, 2020 $4.80 $3.97 −17.3% Decline
February 6, 2020 $5.58 $6.38 14.3% Increase
November 1, 2019 $5.19 $4.78 −7.9% Decline

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.94, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.94 implies a 0.2% chance of earnings manipulation.

Fundamentals And Technical Analysis

U.S. Xpress Enterprises, Inc. is currently trading at $9.14/share, down −9.1% for the day. The company is trading at approximately 80.6% of its 52-week high of $11.34/share. The company’s stock price is up 4.1% since the last earnings report and down −11.7% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 47.62 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:USX Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −42.14 and a forward P/E multiple of 23.86.

U.S. Xpress Enterprises, Inc.’s current share price also implies a price-to-book (P/B) multiple of 1.90. The following table summarizes some other key fundamental ratios:

Data as of October 20, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $9.14
P/E Ratio −42.1x
P/E Ratio (Fwd) 23.9x
PEG Ratio 0.3
Total Debt / Total Capital 56.6%
Levered Free Cash Flow -$15.912 million
EV / EBITDA 10.7x

Finbox

U.S. Xpress Enterprises, Inc. is a small-cap stock with a market capitalization of $453.4 million and a total enterprise value of $1.119 billion. The company operates in the Industrials sector and the Road & Rail industry.

U.S. Xpress Enterprises, Inc. operates as an asset-based truckload carrier providing services primarily in the United States. It operates through two segments, Truckload and Brokerage. The Truckload segment offers asset-based truckload services, including the over-the-road and contract services. The Brokerage segment provides non-asset-based freight brokerage services. The company offers customers a portfolio of services using its truckload fleet and third-party carriers through its non-asset-based truck brokerage network. As of December 31, 2019, its fleet consisted of approximately 6,900 tractors and 15,500 trailers, including 2,000 tractors provided by independent contractors. U.S. Xpress Enterprises, Inc. was founded in 1985 and is headquartered in Chattanooga, Tennessee.

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