AUS
NZ
UK
CA
USA
IND
Highlights
- Cargojet is planning to explore emerging opportunities in the international air-cargo segment, said President and CEO Dr Ajay Virmani.
- The company posted year-over-year growth of 16.8 per cent in total revenues.
- The ACMI business wing of Cargojet witnessed a growth of 21 per cent on a year-over-year basis.
Cargojet Inc is a Mississauga-based air-cargo company that operates a co-load network connecting 14 major cities across the country. It provides aircraft to customers with operations across the US and Europe on an Aircraft, Crew, Maintenance and Insurance basis (ACMI).
In addition, the company delivers international charter services. It claims to carry over 25 million pounds of cargo per week.
A Canadian air-cargo company Cargojet Inc announced its third-quarter results at market open on Monday, November 1. So, let’s have a close look at its stock and financial performance.
Stock performance of Cargojet Inc (TSX:CJT)
On Friday, October 29, the stock of Cargojet was priced at C$ 197.05 apiece, up by 0.015 per cent at market close.
At this level, it had dropped by more than 21 per cent from a one-year high of C$ 250.01 reached on November 9, 2020. However, it was more than 23 per cent above its 52-week low of C$ 159.8 on March 29.
Moreover, it jumped up by more than one per cent in the previous three months and marked a six-month return of almost nine per cent.
Also read: Cargojet (TSX:CJT) Reports Improved Q1 Revenues. Should You Buy?
Financial performance in Q3 2021
Image source: © 2021 Kalkine Media Inc
Cargojet reported total revenues of C$ 189.5 million in its latest quarter, up from C$ 162.3 million in the same period a year ago. This increase in total revenues reflected a year-over-year (YoY) growth of 16.8 per cent.
Its ACMI business line marked YoY revenue growth of 21 per cent, whereas Domestic Network Revenue contributed less than 42 per cent to the overall revenue growth.
Cargojet posted a gross margin of C$ 54 million in Q3 2021 against C$ 58.3 million in the same quarter a year ago.
Its adjusted EBITDA and adjusted EBITDAR for this quarter amounted to C$ 70.9 million, up from C$ 69.8 million in Q3 2020. Its adjusted free cash flow was C$ 51.1 million against C$ 59.3 million in the prior-year quarter.
Its long term outlook for e-commerce remains strong, according to the company, considering the dramatic surge in digital adoption worldwide despite the consumer enthusiasm in outdoor and in-person shopping as the economies and businesses are reopening.
Furthermore, the company is planning to explore emerging international opportunities in the air-cargo segment.
Also read: Cargojet (TSX:CJT) Revenue Rises 34%: A Stock To Buy & Hold In 2021
Bottom line
President and CEO of Cargojet Dr Ajay Virmani said that the clogged ocean and ground transportation supply chains have created short-term to medium-term opportunities for the air cargo businesses.
Pointing towards the growth of the ACMI segment, it is expected that this market opportunity would extend further through the upcoming holiday season, he added.
