Cargojet Inc T.CJT

Alternate Symbol(s): CGJTF | T.CJT.DB.F | T.CJT.DB.E

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Cargojet Inc. is a Canada-based provider of time sensitive air cargo services to all major cities across North America, providing dedicated, aircraft, crew, maintenance and insurance (ACMI) and international charter services. The Company's main air cargo business is comprised of operating a domestic network air cargo co-load network between sixteen major Canadian cities and providing dedicated aircraft to customers on an ACMI basis, operating between points in Canada, the United States, Mexico, South America, Asia and Europe. It also operates scheduled and ad hoc international routes for multiple cargo customers between United States and Bermuda, between Canada, United Kingdom and Germany; between Canada and Asia; and between Canada and Mexico. Its charter services include Go Now, dangerous goods, heavy & oversized cargo, humanitarian and relief, remote destinations, automotive, and oil and gas. The Company operates its network with its own cargo fleet of approximately 41 aircraft.

TSX:CJT - Post by User

Cargojet Inc

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Post by retiredcfon Apr 27, 2022 8:53am

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Post# 34634983

RBC

April 26, 2022

Outperform

TSX: CJT; CAD 156.42

Price Target CAD 302.00

Cargojet Inc.

Connecting The Dots: CJT flash read-through – UPS reports higher Q1 revenue; but volumes lower

Sentiment: neutral

CJT – neutral to sentiment: UPS results highlight solid pricing offset by lower volumes y/y. UPS today reported Q1 revenue and EPS that came in ahead of consensus expectations. Results were higher y/y due to solid pricing. Key for CJT is that UPS’s Next Day Air revenue was up +11% y/ y and that volume was down -3% - a neutral read through, in our view, as solid pricing was offset by lower volumes. Moreover, the 2022 revenue guide was reiterated highlighting, in our view, that the demand outlook is trending in line with expectations. Key on the call will be color on the: 1) eCommerce outlook and drivers of lower volume y/y; as well as 2) visibility into international air cargo capacity, and implications for pricing. See our CJT Q1 preview note here.

What happened? UPS today announced Q1/22 consolidated revenue of $24.4B, a +6% increase y/y (US Domestic Network Next Day Air revenue was up +11% y/y). Consolidated average daily package volume decreased -4% y/y and US Domestic Next Day Air volume was down -3% y/y. Adjusted diluted EPS came in at $3.05, or up +10% y/y, and above consensus $2.89.

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