CORRECTED-Canada's Cargojet Q4 revenue eases past expectations

Overview

• Canada air cargo provider's Q4 revenue fell, beat analyst expectations

• Adjusted EBITDA for Q4 increased by 3.6% yr/yr, driven by cost reductions

• Net earnings for Q4 fell 62.6% due to higher finance costs

Result Drivers

• DOMESTIC REVENUE GROWTH - Domestic revenue increased by 16.9% yr/yr, offsetting declines in ACMI and Charter revenues

• COST REDUCTIONS - Adjusted EBITDA growth driven by lower direct and SG&A costs excluding depreciation and share-based compensation

• OPERATIONAL EFFICIENCY - Achieved 99% on-time performance despite challenging winter conditions

Company press release: ID:nCNW08pdqa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the courier, postal, air freight & land-based logistics peer group is "buy"

• Wall Street's median 12-month price target for Cargojet Inc is C$110.00, about 20.6% above its February 24 closing price of C$91.19

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 14 three months ago

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