TSX:CJT - Post Discussion
Post by
retiredcf on Jul 27, 2022 8:39am
More RBC
July 27, 2022
Cargojet Inc.
In-line quarter as CJT delivers exceptionally high growth rates across all segments
TSX: CJT | CAD 133.12 | Outperform | Price Target CAD 302.00
Sentiment: Neutral
Our early take: CJT delivered adjusted EBITDA of $81MM, in-line with consensus $80MM (RBC: $80MM) and up +20% despite significant macro uncertainty and the share being under significant pressure into the quarter. Mgmt noted that struggles in passenger airline markets, including poor on-time performance and reliability, has led cargo customers to continue to abandon traditional passenger belly space channels, which provides opportunities for Cargojet to capture unmet demand in the medium term, a positive takeaway from the press release in our view.
• Q2/22 highlights: Total revenue came in at $247MM vs. consensus $231MM (RBC: $224MM)—largely in line ex fuel with ACMI coming in better (+62% y/y) and Domestic (+15% y/y) and All-in Charter (+23% y/y) a touch below. Margin was below at 32.9% due to the mathematical impact of fuel surcharge (RBC: 35.8%), but with $ margin protected as expected, we see this as irrelevant.
Conference call details
• Today at 8:30 A.M.
• Dial-in: 800-289-0720
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