Horizon Lines, Inc. Earnings: Swing to a Loss, Short of Analysts’ Forecasts

Horizon Lines, Inc. (NASDAQ:HRZ) swung to a loss in the second quarter, missing analysts’ forecast. Horizon Lines, Inc shipping and logistics company through its subsidiaries offers logistics solutions to shippers from a suite of transportation and distribution management services, information technology and intermodal trucking and warehousing services.

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Horizon Lines Earnings Cheat Sheet for the Second Quarter

Results: Swung to a loss of $7 million (22 cents per diluted share) in the quarter. Horizon Lines, Inc. had a net income of $4.1 million on 14 cents per share in the year earlier quarter.

Revenue: Rose 6% to $307.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: HRZ reported an adjusted net loss of 67 cents per share. By that measure, the company fell short of the mean analyst estimate of a loss of 18 cents per share. Analysts were expecting revenue of $311.7 million.

Quoting Management: “Soft container rates in the trans-Pacific market and high fuel prices pushed our second-quarter financial performance significantly below last year’s,” said Stephen H. Fraser, President and Chief Executive Officer. “Trans-Pacific rates remained under pressure throughout most of the quarter, as some large international carriers continued to take aggressive rate actions amid capacity expansion in the tradelane. This excess capacity pressured overall volumes in June, resulting in further deterioration of spot rates and the postponement of peak-season surcharges.”

Key Stats:

The company has now missed analyst estimates for the last four quarters. It fell short by 40 cents in the first quarter, by 5 cents in the fourth quarter of the last fiscal year, and by 10 cents in the third quarter of the last fiscal year.

A year-over-year revenue increase last quarter snaps a streak of two consecutive quarters of revenue declines. Revenue fell 0.3% in the first quarter and fell 13.3% in the fourth quarter of the last fiscal year.

Competitors to Watch: Kirby Corporation (NYSE:KEX), Alexander & Baldwin, Inc. (NYSE:ALEX), Trailer Bridge, Inc. (NASDAQ:TRBR), K-Sea Transportation Partners L.P. (NYSE:KSP), American Commercial Lines Inc. (NASDAQ:ACLI), Intl. Shipholding Corp. (NYSE:ISH), and Hanoi Maritime Holding Co (NYSE:MHC).

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(Source: Xignite Financials)