TravelCenters of America Earnings: Here’s Why Investors are Selling Shares Now

TravelCenters of America LLC (AMEX:TA) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 18.80%.

TravelCenters of America LLC Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 48.08% to $0.54 in the quarter versus EPS of $1.04 in the year-earlier quarter.

Revenue: Decreased 1.11% to $2.02 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: TravelCenters of America LLC reported adjusted EPS income of $0.54 per share. By that measure, the company missed the mean analyst estimate of $1. It missed the average revenue estimate of $2.12 billion.

Quoting Management: Thomas M. O’Brien, TA’s CEO, made the following statement regarding the 2013 second quarter results:
“The 2013 second quarter results are reflective of softer industry conditions than experienced in the 2012 second quarter. Despite that softness, I remain excited about the future opportunities I expect our leadership position in our industry and our capital investments will provide.”

Key Stats (on next page)…

Revenue increased 3.14% from $1.96 billion in the previous quarter. EPS increased to $0.54 in the quarter versus EPS of $-0.41 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.62 to a profit $0.63. For the current year, the average estimate has moved down from a profit of $1.15 to a profit of $1.13 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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