TravelCenters of America Earnings: Here’s Why Shares are Down Now

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TravelCenters of America LLC (AMEX:TA) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.51%.

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TravelCenters of America LLC Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.41 in the quarter versus EPS of $-0.49 in the year-earlier quarter.

Revenue: Decreased 1.88% to $1.96 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: TravelCenters of America LLC reported adjusted EPS loss of $0.41 per share. By that measure, the company beat the mean analyst estimate of $-0.43. It missed the average revenue estimate of $2.04 billion.

Quoting Management: Thomas M. O’Brien, TA’s CEO, made the following statement regarding the 2013 first quarter results of operations and recent activities.
“During the first quarter of 2013, TA was again able to increase EBITDAR and improve net income per share over the prior year. During the 2013 first quarter, our 17,000 employees overcame the challenges of severe weather, particularly on the east coast during February, one less day in February due to leap year in 2012, and the Easter holiday falling in March 2013 versus in April 2012, all by executing our business plan and, as always, taking care of our customers.”

Key Stats (on next page)…

Revenue increased 1.67% from $1.93 billion in the previous quarter. EPS increased to $-0.41 in the quarter versus EPS of $-0.08 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.99 to a profit $1.06. For the current year, the average estimate has moved up from a profit of $1.06 to a profit of $1.2 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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