Q: I was expecting TFII to have a rough day today after missing their target numbers. But it's up (nice surprise), What's happening? How did the call go. Were there some encouraging developments discussed?
5i Research Answer:
It is a solid market day, but sometimes, when everyone is expecting bad news the bad news does not have the same impact as expected. On the call, the CEO did indicate that it had looked at an acquisition, but walked away due to tariffs. This is a good sign that the company will continue its MO of growth by strategic acquisitions. Revenue also grew 5%. Backhaul is really bad, but this is also a tariff situation (nothing is coming back to Canada). Essentially, the company remains poised to do well whenever industry conditions improve.