Trucking company Heartland Express Inc. (HTLD), Friday said its fourth-quarter profit increased from last year on higher revenues and better operating margins despite concerns from rising fuel prices. Earnings for the quarter came in ahead of analysts' estimates, but revenues fell short.
The North Liberty, Iowa-based company's fourth quarter profit rose to $17.1 million or $0.20 per share from $15.4 million or $0.17 per share last year. On average, 17 analysts polled by Thomson Reuters expected earnings of $0.18 per share for the quarter. Analysts' estimates typically exclude unusual gains and losses.
Heartlands' operating revenues for the quarter grew 1.5 percent to $131.2 million from $129.2 million in the fourth quarter last year. Ten Street analysts on a consensus expected revenues of $133.02 million for the quarter.
Fuel surcharge revenues for the quarter rose 30.5 percent to $26.5 million from $20.3 million last year.
Heartland said its revenue-growth is still troubled by rising fuel costs. Fuel expense increased 15.4 percent for the quarter, as U.S. average cost of fuel advanced 22.5 percent to $3.870 per gallon during the fourth quarter.
Heartland said it continues to focus on fuel surcharge pricing, truck idling hours, and fuel purchasing decisions in an effort to lessen the impact of higher fuel costs.
The company also added that the trucking industry continues to be challenged by tight driver capacity.
Operating ratio, operating expenses as a percentage of revenues, improved to 79.5 percent from 81.0 percent last year.
HTLD is currently trading on the Nasdaq at $14.57, up $0.04 or 0.28% on a volume of 0.18 million shares.
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