Cargojet (TSX:CJT) Reports Improved Q1 Revenues. Should You Buy?

Summary

• Canadian airline Cargojet Inc (TSX:CJT) posted total revenues of C$ 160.3 million in its latest quarter.
• The top freight carrier announced its financial results for the first quarter ending March 31, 2021, on Monday, May 3.
• Cargojet President and CEO Dr Ajay Virmani has said that the company is trying to capture the boom in the e-commerce industry.

Canadian airline Cargojet Inc (TSX:CJT) posted total revenues of C$ 160.3 million in its latest quarter, noting an increase of C$ 37.3 million from the first quarter of the previous year.

The top freight carrier announced its financial results for the first quarter ending March 31, 2021, on Monday, May 3.

Cargojet’s latest financial report also reflected net earnings of C$ 89.4 million in Q1 2021, as compared to a net loss of C$ 1.8 million in Q1 2020.

Cargojet President and CEO Dr Ajay Virmani has said that the company is trying to capture the boom in the e-commerce industry, adding that it has strengthened its balance sheet and invested in expanding its fleet.

Here's How Cargojet (TSX:CJT) Stocks Are Performing

Cargojet stock’s one-year growth, at 29 per cent, has surpassed the S&P/TSX Transportation (Industry Group) Index, which plunged by 0.6 per cent.

1-year chart of stock performance of Cargojet Inc (Source: Refinitiv/Thomson Reuters)

Priced at C$ 180.99 at market close on April 30, Cargojet shares were down by 38 per cent from its 52-week high of C$ 250.01 apiece (November 9, 2020) and 31 per cent up from its 52-week low of C$ 125.18 (May 27, 2020).

Cargojet’s market cap stands at C$ 3.1 billion, while its debt-to-equity ratio is 3.27, as per TMX.

The company also distributes a C$ 0.26 quarterly dividend. It recorded a dividend growth of 7.1 per cent over the past three years.

A Look At Cargojet’s Latest Financials

In the first quarter of 2021, Cargojet posted a gross margin of C$ 45.3 million, as compared to that of C$ 32.2 million in Q1 2020. Its net earnings per share for the latest quarter stood at C$ 5.24.

The worth of Cargojet’s total assets increased to C$ 1.4 billion in Q1 2021, up from that of C$ 1.2 billion in in Q1 2020. The latest quarter also saw net cash of C$ 65.1 million generated from operating activities. 

The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.