Worth Watching Stock for Traders: Universal Logistics Holdings (NASDAQ:ULH)

Universal Logistics Holdings (NASDAQ:ULH) changed -20.05% to recent value of $20.14. The stock transacted 186581 shares during most recent day however it has an average volume of 72.2K shares. It spotted trading -34.13% off 52-week high price. On the other end, the stock has been noted 16.36% away from the low price over the last 52-weeks.

Universal Logistics Holdings (NASDAQ:ULH) a leading asset-light provider of customized transportation and logistics solutions,  reported consolidated third quarter 2019 net loss of $8.4 million, or $(0.30) per basic and diluted share, on total operating revenues of $375.5 million.  This compares to net income of $15.1 million, or $0.53 per basic and diluted share, during third quarter 2018 on total operating revenues of $374.3 million.  Included in the reported loss were pre-tax charges of $24.8 million for a previously disclosed legal settlement and an additional $2.2 million charge for unrelated ongoing litigation.  Universal has also estimated the impact of the United Auto Workers (UAW) labor strike against General Motors to have reduced operating income by $4.0 million.

The UAW labor strike, which began on September 16, 2019, shuttered activity at Universal’s dedicated and value-added operations supporting General Motors across the United States.  However, in order to maintain labor continuity Universal continued to pay employees during strike despite the lost production. The impact of the strike is estimated to have reduced Universal’s weekly operating income by $2.0 million per week during the two weeks the strike impacted the third quarter 2019.  The UAW and General Motors announced a tentative agreement has been reached and, if ratified, the strike would end around October 25, 2019.

In the third quarter 2019, Universal reported an operating loss of $7.4 million compared to operating income of $22.5 million in the same period last year.  EBITDA, a non-GAAP measure, decreased $26.6 million during the third quarter 2019 to $11.6 million, compared to $38.3 million one year earlier.  Both Universal’s reported operating loss and EBITDA during the third quarter 2019 include the litigation charges and estimated losses from the labor strike.  As a percentage of operating revenue, Universal’s operating income margin and EBITDA margin as reported were (2.0)% and 3.1%, respectively.  These metrics compare to 6.0% and 10.2%, respectively, in the third quarter of 2018.  Operating income margin and EBITDA margin for the third quarter 2019 were both reduced 8.3% as a result of the impact of litigation charges and the estimated losses due to the labor strike.

ULH has a gross margin of 27.70% and an operating margin of 6.10% while its profit margin remained 3.90% for the last 12 months. Its earnings per share (EPS) expected to touch remained 424.90% for this year while earning per share for the next 5-years is expected to reach at 3.00%.

The company has 28.39M of outstanding shares and 8.28M shares were floated in the market. According to the most recent quarter its current ratio was 1.1 that represents company’s ability to meet its current financial obligations. The price moved ahead of -15.92% from the mean of 20 days, -11.41% from mean of 50 days SMA and performed -6.54% from mean of 200 days price. Company’s performance for the week was -18.69%, -16.19% for month and YTD performance remained 11.89%.

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