What’s in the Cards for USA Truck (USAK) in Q1 Earnings?

USA Truck USAK is scheduled to report first-quarter 2022 results on Apr 28, after market close. USAK boasts a stellar surprise history with its earnings having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 64.4%. The Zacks Consensus Estimate for first-quarter 2022 earnings has decreased 2.7% to 72 cents per share in the past 60 days.

Let’s discuss the factors that might have impacted USA Truck’s performance in the March quarter.

USA Truck, Inc. Price and EPS Surprise

USA Truck, Inc. Price and EPS Surprise

USA Truck, Inc. Price and EPS Surprise

USA Truck, Inc. price-eps-surprise | USA Truck, Inc. Quote

USA Truck’s cost-control efforts are likely to have boosted its bottom line in the March quarter. Owing to cost discipline, the adjusted operating ratio (operating expenses as a percentage of revenues) is likely to have improved sequentially in the to-be-reported quarter. The gradual reopening of the U.S. economy with vaccination programs led to increased economic activities.

This is likely to have inflated operating revenues at both the trucking and USAT Logistics segments owing to higher demand. A significant increase in freight demand is also expected to have aided USA Truck’s first-quarter 2022 performance.

What Does the Zacks Model Say?

The proven Zacks model does not predict an earnings beat for USA Truck this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here as elaborated below.

You can see the complete list of today’s Zacks #1 Rank stocks here. Earnings ESP: USA Truck has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate of 72 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: USA Truck carries a Zacks Rank #3(Hold), currently.

Highlights of Q4 Earnings

USA Truck’s earnings of £1.38 per share surpassed the Zacks Consensus Estimate of 78 cents. Operating revenues of £200.9 million increased 26.5% on a year-over-year basis, driven by a solid performance of the trucking division.
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Stocks to Consider

Investors interested in the broader Transportation sector can consider stocks like United Parcel Service UPS, Southwest Airlines LUV and Ryder System, Inc.

R as these stocks possess the right combination of elements to beat estimates this reporting cycle. UPS has an Earnings ESP of +1.92% and a Zacks Rank of 3 at present. UPS will release first-quarter 2022 results on Apr 26.

Strong package delivery demand is expected to have upped UPS’ first-quarter 2022 performance. Higher revenue per piece is likely to get reflected in U.S. Domestic Package revenue results.

Southwest Airlines has an Earnings ESP of +23.75% and is currently a #3 Ranked player. LUV will release first-quarter 2022 results on Apr 28. Southwest Airlines expects first-quarter 2022 operating revenues to decline 8-10% from the first-quarter 2019 reading.

LUV expects to incur a loss in the period. Ryder has an Earnings ESP of +5.04% and is currently a #2 Ranked player. R will release first-quarter 2022 results on Apr 27.

New business, favorable pricing and higher volumes might have aided Ryder’s first-quarter 2022 performance. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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