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TravelCenters of America tumbles in premarket trading after Q2 miss

  • Shares of TravelCenters of America (TA) are off nearly 18% before the bell after the company badly misses on the bottom line for Q2.
  • Net income falls 46% Y/Y for the quarter as crimped fuel margins take a bite out of EBITDAR. Higher depreciation and amortization also weighed on results.
  • Commenting, CEO Thomas O'Brien says the results are "reflective of softer industry conditions." (PR)
Comments (1)
  • Philip Marlowe
    , contributor
    Comments (920) | Send Message
     
    This is a nasty hit, but it is temporary. It seems that the competition (Pilot Flying J) has dropped margins in a desperate attempt to retain market share amid federal investigations. Pilot Flying J cannot do that forever, because among other things they are deep in debt. In fact, TA management already said that Pilot Flying J has already stopped their promotion.

     

    So hopefully this will resolve itself in a quarter or so. The most important metric for TA (in my opinion) is their non-fuel revenues and profits and those keep growing, thankfully.
    6 Aug 2013, 02:11 PM Reply Like
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