Vitran Corporation falls to new 52-week low on Q3 profit drop
Shares of freight transportation company Vitran Corporation Inc. (Nasdaq: VTNC) have found a new 52-week low on news before the opening that third-quarter profit declined and missed Wall Street’s projections.
Net income for the three months ended Sept. 30 was $3.1 million, or $0.23 per share, below analysts’ forecast profit of $0.40 per share. Toronto-based Vitran had a profit of $4.9 million, or $0.38 per share, a year earlier.
“We are clearly disappointed with Vitran’s third-quarter results,” said president and CEO Rick Gaetz in a statement. “We came up short of our expectations due to a continuation of the highly competitive operating environment that impacted revenue growth and has put pressure on industry operating margins in recent quarters.”
However, revenue rose 41.48% to $171.9 million, from $121.5 million during the third-quarter of 2006. Three analysts polled by Thomson Financial were looking for revenue of $170.17 million.
Looking ahead, Vitran’s chief said that the company will focus on building its North American freight network.
Vitran also announced that it expects the current challenging environment to continue into the fourth quarter, making it impossible for the company to meet its annual guidance of $1.60 per share to $1.70 per share. Analysts were looking for earnings of $1.48.
At 12:25 p.m. ET, shares of Vitran Corp. (VTNC) were off $2.96, or 17%, to $14.13. The previous 52-week low was $15.76, established on Feb. 13. The 52-week high is $23.35, touched on June 20.
