TFI International shares drop as high fuel costs drive earnings miss

Montreal - TFI International's stock plummeted 14 per cent to $135.44 on Friday as investors reacted to the company's earnings shortfall and a bleak outlook, despite profitable gains. The country's largest trucking firm reported a 25 per cent year-over-year increase in net income to $105.7 million and a 13 per cent rise in revenue to $2.23 billion.

However, both figures failed to impress Wall Street, with investors primarily concerned over the high fuel costs driving down earnings and the company's less-than-optimistic forecast. TFI's CEO and chairperson Alain Bédard attributed the earnings miss to the rising price of diesel, which has proven particularly detrimental to some of the company's U.S. operations due to an inefficient route network.

Despite the disappointing forecast, TFI maintains that the solid execution in its full truckload and logistics divisions helped cushion the blow.