Shares for transportation and logistics company Radiant Logistics (RLGT) plummeted more than 14% on Wednesday, falling to $2.56. What caused the slump? The company posted disappointing Q4 results for fiscal 2016 after the closing bell on Tuesday.
The stock has recovered slightly, up 1.5% to 2.7 on Thursday. Here are four takeaways from the company’s results:
1. Earnings Per Share and Revenue Missed Expectations
Radiant Logistics posted a loss of 11 cents per share for the fourth quarter, missing estimates of a 3-cent-per-share gain.
The company also failed to meet revenue forecasts of $202.6 million, reporting $183.6 million in revenue for the quarter.
2. An Unfavorable Market Environment Drove the Q4 Results
CEO Bohn Crain said the company’s quarterly results were driven by “excess capacity and related margin pressures” related to the current market environment.
Crain said Radiant’s brokerage operations in particular were hit hard.
The CEO also said the loss of a significant customer impacted their results for the quarter.
3. Revenue is Up for the Year
Compared to the last fiscal year, revenue for Radiant Logistics is up 56% to $782.5 million from the $502.7 million reported last year.
Net revenue was up 51% to $186.7 million from $123.7 million the previous fiscal year.
4. Expenses Led to Losses
Net revenue gains were offset by increased costs, primarily in impairment charges and termination expenses. These two expenses caused the company to post a loss of $337,000 before taxes and interest.
The company also posted $4.9 million in interest expenses and loan fees of $1.2 million.
For the fourth quarter, Radiant posted a net loss of $633,000. During the same period last year, the company reported a net income gain of $1.7 million.
While net revenue was up 8.8% year-over-year, expenses were also up by 21%.
