Forecasts for Q3 earnings per share for less-than-truckload shippers have been adjusted downward, affecting projections for 2025/2026 based on lower starting points. This revision primarily stems from generally soft mid-Q3 operational updates from the industry, although it's noted that a competitor has maintained robust volume intake trends, thanks to ongoing new terminal openings.

The initiation of coverage on the transportation and logistics industry reflects a broadly optimistic outlook, based on the assessment that the current cyclical downturn is nearing its end. With the anticipation of rates and margins nearing their lowest point, there is an expectation of significant earnings growth in the coming years as the market recuperates. This positive perspective is underpinned by the belief that many companies in the industry boast strong leadership and a history of prudent capital management. Transportation firms are seen as offering vital, irreplaceable services that are integral to the North American economy, which minimizes the risk of disruption or replacement. Investors are advised to position themselves to benefit from the cyclical upturn, focusing on companies that are well-placed to gain disproportionately as the conditions in the freight market improve.