MONDOVI - Marten Transport , Ltd. (NASDAQ:MRTN) disclosed a decline in first-quarter earnings and revenue, missing Wall Street expectations as the freight market faced a downturn. The Wisconsin-based trucking company reported net income of $9.6 million, or $0.12 per diluted share, for the first quarter ended March 31, 2024.
This result fell short of the analyst consensus estimate of $0.14 per share. Operating revenue for the quarter was $249.7 million, also below the analyst forecast of $263.84 million.
Compared to the same period last year, Marten Transport's earnings dropped significantly from $22.5 million, or $0.28 per diluted share, and operating revenue decreased from $298.0 million. The company's operating income saw a sharp decline to $12.3 million from $29.0 million in the first quarter of the previous year.
Executive Chairman Randolph L. Marten attributed the downturn to an oversupply and weak demand in the freight market, inflationary operating costs, and the cumulative impact of freight rate reductions and related freight network disruptions.
Despite the challenging market conditions, Marten emphasized the value of the company's multifaceted business model, particularly the performance of its dedicated and brokerage operations during the first quarter. He also noted that the company has not agreed to rate reductions since the previous August, underscoring a focus on securing fair compensation for their premium services.
The press release did not provide specific financial guidance for the upcoming quarters or fiscal year, nor did it mention the stock's market movement post-earnings release. Without this information, it is not possible to compare the company's outlook to market expectations.
Marten Transport specializes in temperature-sensitive truckload services, catering to the transportation and distribution of food, beverages, and other consumer packaged goods. The company operates across the United States, Mexico, and Canada, with a focus on expedited movements for high-volume customers.
Despite the current challenges, Marten Transport remains committed to minimizing the impact of the freight market downturn on its operations and positioning itself for future growth opportunities.
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