Transport ETFs At A Glance Post Q2 Earnings

The transportation sector saw some pullbacks this earnings season with stock prices dipping 0.3% (aggregate one-day stock market reaction to earnings releases) in response to earnings announcements.

Total earnings of 100% of the sector’s market capitalization that has been reported so far is up 5.1% on revenue growth of 4%. Earnings and revenue beat ratios of 86.7% and 40%, respectively, are encouraging as most industry players managed to beat on either earnings or revenues or on both counts.

For a better understanding, let’s dig into the earnings results of some well-known industry players:

Transportation Earnings in Focus

The world's largest package delivery company United Parcel Service’s (UPS - Free Report) top and the bottom line beat the Zacks Consensus Estimate. Earnings of $1.96 were 3 cents ahead of the consensus mark while revenues of $18.04 billion edged past the estimated $17.96 billion. For 2019, the company expects earnings per share in the range of $7.45-$7.75. The Zacks Consensus Estimate at the time of earnings release was pegged at $7.46.

Major railroads Union Pacific (UNP - Free Report) and Kansas City Southern (KSU - Free Report) delivered better-than-expected earnings as well as revenues while Norfolk Southern Corp (NSC - Free Report) missed on the same. Union Pacific’s earnings outpaced estimates by 10 cents while the same at Kansas City topped the mark by 4 cents. Revenues trumped the Zacks Consensus Estimate by $36 million and $10 million, respectively. Meanwhile, earnings of $2.70 at Norfolk Southern missed the Zacks Consensus Estimate by 7 cents and revenues of $2.93 billion marginally came below the consensus estimate by $4 million.

U.S. airlines Delta Air Lines (DAL - Free Report) and United Continental (UAL - Free Report) also beat on both earnings and revenues. Earnings and revenues at Delta edged past the Zacks Consensus Estimate by 6 cents and $62 million, respectively. At United Continental, earnings of $4.21 and revenues of $11 billion exceeded the Zacks Consensus Estimate of $4.04 and $11.36 billion, respectively.

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