Seeking Alpha

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
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio: