USA Truck (USAK) offers truckload freight services to various industries like industrial machinery and equipment, rubber and plastics, retail stores, paper products, durable consumer goods, metals, electronics, and chemicals. The company primarily hauls products in Canada, Mexico and the United States. USA Truck, which also provides third party logistics and freight brokerage services, has a fleet of 2,499 tractors and 7,024 trailers. Those figures are current as of the end of 2007, and could be pared due to rising fuel prices and a slowing US economy throughout 2008.
USA Truck recently reported a surge in second quarter earnings, with net income rising to 21 cents a share, up from 15 cents a year earlier. Revenues also rose to $146 million from $124 million. Analysts that track the Arkansas-based company expect the company to earn 38 cents per share in 2008 and 61 cents a share in 2009. Five analysts follow the company, with the last two ratings changes being positive upgrades. The most recent, a change by the brokerage firm Stephens Inc. moves the stock to “overweight” from “equal weight.” The upgrade came in July.
Potential investors should note that the transportation sector has been ravaged lately by higher fuel prices, especially surging diesel costs, which impacts trucking firms deeply. The current US economic slowdown also could affect USA Truck’s bottom line. That said, USA Truck’s shares have held up reasonably well compared to the broader market. Insiders own 31 percent of USA Truck’s shares, while 40 institutions control another 57 percent. Mutual fund owners include DFA, Fidelity, T. Rowe Price and Vanguard. USA Truck’s major competitors include JB Hunt Transport Services Inc., Landstar Systems Inc. and the privately held Swift Transportation Co.
USA Truck shares closed at $14.58 on Wednesday and have traded between $9.50 and $19.53 over the past 52 weeks. The company has a market value of $151.7 million and nearly 3,600 full-time workers.
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