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To the annoyance of some shareholders, Cass Information Systems (NASDAQ:CASS) shares are down a considerable 34% in...
Negative trends in the transportation markets continued in February, according to freight data released by payment management solutions provider, Cass Information Systems Inc. (NASDAQ: CASS).The Cass Freight Index fell again in February as the shipments index declined 7.5% year-over-year (y/y) with the expenditures index declining 6.8% for the month.In January, the report's author and Stifel Financial (NYSE: SF) equity research analyst David Ross was hopeful for a second quarter snapback as supply chains recovered from coronavirus-related disruption and import activity increased. A month later, that hope has somewhat diminished."This certainly puts some doubt around our view that the second quarter of 2020 could see actual y/y growth in domestic U.S. shipments and freight costs, as traditional seasonal freight patterns may not hold," stated Ross. "We are hearing Chinese manufacturing activity is picking back up but at below-average levels. And then there is the issue of moving the goods produced out of the country and to the U.S., which may be limited by airfreight capacity, truck capacity, and/or container capacity."The positives, so to speak, were that the y/y declines in February were less severe than those seen in January and that shipment volumes improved 6.2% sequentially from January, which was in line with recent historical seasonality trends. For the last five years, the shipments index has improved 6.13% on average from January to February.Further, Ross suggests that U.S. transportation markets entered 2020 with a bit of a headwind due to "elevated inventories," which he now believes are bleeding off rapidly and may require restocking "before too long."Ross said that he will be looking to the airfreight markets for the first signs of recovery as retailers and manufacturers look to quickly replenish supply. Ross is calling for "at least a short period of large yield spikes for cargo capacity" as demand returns. He said that recent increases in airfreight yields have more to do with the lack of available cargo belly space throughout the market than improved demand.While Ross suggested that January could have been the bottom for this cycle, he left open the potential for a "double dip or at least a delay in improvements," noting a 23% y/y decline in imports at the Port of Los Angeles in February. In recent days, FreightWaves has seen outbound tender truckload (TL) volumes inflect positively on a y/y comparison as many retailers have been replenishing their shelves given the run on household supplies caused by the outbreak.Outbound Tender Volume Index (USA) – SONAR: OTVI.USAThe expenditures index was up 4.3% sequentially in February, but lagged the average seasonal improvement of 4.8% normally seen from January to February. Ross expects near-term pricing to remain soft, but still believes that increased regulation in the trucking industry as well as cost inflation will result in a purge of TL capacity from the market. A potential lack of capacity and the expectation for inventory restocking, should "drive rates higher again at some point this year."The Cass TL Linehaul Index, which measures per-mile linehaul rates, declined 6.1% y/y in February, similar to the rate of decline reported during January.Ross said that he is now looking at demand as the driver for rate increases in 2020. He expects TL capacity to continue to exit the market, but indicated that the timing of the potential rate improvement, which many industry participants believed to be mid-2020 prior to the outbreak, is more dependent on volumes.Further, he said that given the weakness in the linehaul index, which is closely correlated with yield results reported from the public TL carriers, it "looks like another weak first quarter ahead" for the group.Lastly, the Cass Intermodal Price Index, which measures total per-mile cost for the "smaller intermodal market," saw its largest y/y decline of this cycle at 5.1%. Depressed container import activity has resulted in declines in intermodal rail shipments. According to the latest weekly report published by the Association of American Railroads, U.S. intermodal rail traffic is down 7.7% year-to-date compared to the same period in 2019.Ross expects intermodal pricing to rebound once TL pricing improves.Cass processes more than $28 billion in freight payables on behalf of its clients annually.Image Sourced from PixabaySee more from Benzinga * Seafood Shipping Concerns Rise Amid Coronavirus Outbreaks * Show Organizers Cancel MATS Amid Coronavirus Threat * Trucking Stocks Are Doing About As Miserable As The Broader Stock Market(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Cass...
Invoice payment and information services provider Cass Information Systems Inc. (NASDAQ: CASS) reported a 6% year-over-year decline in transportation-related invoice and dollar volumes during the fourth quarter of 2019. The St. Louis-based company stated that the decline was largely due to a tough comparison from the fourth quarter of 2018 as well as weakness in the industrial segments. Transaction volumes in those segments declined 11% year-over-year with only a 2% decline in dollar volume.
Is Cass Information Systems, Inc. (NASDAQ:CASS) a good dividend stock? How can we tell? Dividend paying companies with...
The Cass Freight Index fell again in January, reporting the highest year-over-year declines of this freight cycle. The shipments component of the index fell 9.4% year-over-year, the biggest one-month decline ...
Today we are going to look at Cass Information Systems, Inc. (NASDAQ:CASS) to see whether it might be an attractive...
Cass Information Systems, Inc. (CASS), the leading provider of freight payment services and publisher of several transportation indexes, has partnered with financial services firm Stifel (SF) to author its new Cass Transportation Indexes Report. The report, which will be an adaptation of the existing Cass Freight Index Report, will provide context and analysis for Cass’s three indexes – the Cass Freight Index®, Cass Truckload Linehaul Index®, and Cass Intermodal Price Index®. While the Cass Freight Index measures North American freight volumes, the two mode-specific indexes follow changes in shipping costs.
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Eric Brunngraber has been the CEO of Cass Information Systems, Inc. (NASDAQ:CASS) since 2008. This report will, first...
A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period […]
The Cass Freight Shipments Index fell 3.3% year-over-year in November, marking one full year of year-over-year declines. This was the first report published under new author, equity research analyst David Ross with Stifel Financial Corp. (NYSE: SF), who referred to the decline as "less bad" compared to recent results including October, when the decline approached 6%. The report called out retail inventory destocking and a soft industrial economy as the primary reasons for the current "freight recession," which is producing weaker shipments.
Freight payment services provider Cass Information Systems Inc. (NASDAQ: CASS) announced new partnerships designed to enhance the reporting and data methodology of its Cass Transportation Indexes. Cass has partnered with financial services firm Stifel Financial Corp. (NYSE: SF) to author the new Cass Transportation Indexes Report. Cass stated that the report will be a new version of its current Cass Freight Index Report.
Invoice payment and information services provider Cass Information Systems Inc. (NASDAQ: CASS) reported a 7.5% year-over-year decline in transportation-related invoice volumes during the first quarter of 2020.Total revenue was basically flat year-over-year at $38.1 million, but net income declined 7.6% to $7.5 million, or $0.52 per share. Key Performance IndicatorsThe St. Louis-based company attributed the declines to COVID-19, lower interest rates and weaker energy prices.From the press release, "With manufacturing companies representing an important component of the transportation customer base, the previously reported contraction in this sector, combined with the recent effects of COVID-19, created year-over-year trials for the division. However, the customer base remains stable, which should provide a solid foundation for recovery."Facility-related (electricity, gas, waste and telecommunications ) payments declined 7% year-over-year, with dollar volume falling 4%. "As with the Transportation division, the customer base in facility-related businesses remains stable, offering optimism about the prospects for a quick recovery," stated the release."By being a reliable business partner, providing financing and flexible terms, and adapting and accommodating as necessary, we not only assist them but secure our future," stated Cass chairman and CEO Eric H. Brunngraber.The company declared its regular quarterly dividend of $0.27 per share on April 21. Cass has consistently paid regularly scheduled cash dividends since 1934.The company publishes the Cass Transportation Index report, which provides an outlook of monthly trends in the freight markets. The company's shipment and expenditure indexes are derived from the data captured from the more than $28 billion in freight payables on behalf of its clients annually. In total, Cass disburses more than $60 billion annually for its clients.See more from Benzinga * Volvo Q1 Earnings Presage Tough Times Ahead * Union Pacific Sees First-Quarter Net Profit Grow * Daseke Appoints New CFO(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The Cass Freight Index fell to its lowest level for 2019 in the month of December, with the shipments component of the index falling 7.9% and the expenditures component declining 6.2% year-over-year. The shipments component of the index extended its round trip of year-over-year declines, first turning negative in December 2018.
Cass Information Systems, Inc. (NASDAQ: CASS) reported its first quarter 2020 earnings and COVID-19 update.