TSX:CJT - Post Discussion
Post by
retiredcf on Nov 05, 2024 8:34am
RBC
November 4, 2024
Cargojet Inc.
Q3 in line on strong volume offset by one-time start up costs; peak season outlook robust
TSX: CJT | CAD 138.80 | Outperform | Price Target CAD 189.00
Sentiment: Neutral
Our view: CJT reported Q3 EBITDA that came in a touch below consensus expectations. Overall, we view the results as roughly in line and therefore neutral to sentiment. The company achieved robust volume growth (+15%) in Domestic despite weak Canadian consumer data points, although one-time start-up costs tempered operating leverage in the quarter. Furthermore, we like the continued strong performance in Charter on the back of the Great Vision HK Express deal. Turning to the outlook, management referenced in the MD&A "peak season demand remains robust across all sectors", which we believe suggests upside to Q4 consensus estimates - impressive given the industrial headwinds affecting outlooks at the other transports within our coverage. Key on the call tomorrow will be the extent these one-time costs referenced in the press release subside in Q4 during what management expects to be a strong peak season. Finally, we note that Cargojet renewed it NCIB representing 9.46% of outstanding shares.
Q3/24 highlights: Total revenue came in at $246MM vs. consensus $247MM (RBC: $248MM). Adjusted EBITDA of $82MM was a touch below consensus $84MM (RBC: $89MM). See Exhibit 1.
Conference call details
• November 5, 2024 at 8:30 A.M.
• Dial-in: 800 806 5484 pass code 244 7875#.
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