Railroads and trucking companies are facing headwinds to 1Q earnings from the impact of severe weather on volume and costs, coupled with higher fuel prices. In this Talking Transports podcast, Lee Klaskow, Bloomberg Intelligence senior transportation and logistics analyst, previews what could be in store for the truckload, less-than-truckload (LTL) and railroad industries during 1Q earnings season. Railroads are poised for adjusted EPS growth, while truckload carriers may face flattish growth. Mid-single digit revenue per hundredweight growth, excluding fuel surcharges, won’t be enough to offset the deleveraging impact of lower tonnage on margins. The demand outlook isn’t encouraging, given the ISM Manufacturing Index, a good proxy for LTL demand, went back into contraction territory in March, where it has been in 27 of the last 29 months. The impact from tariffs on inflation and demand will drive the earnings picture for truckers and railroads moving forward.

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