Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why TravelCenters of America Shares Dropped

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of TravelCenters of America (NYSE: TA  ) were getting stranded today, falling as much as 13% after posting quarterly earnings.

So what: The highway rest-stop operator beat EPS estimates slightly with a $0.41 loss on expectations of -$0.43, but revenues were down 1.9% to $1.96 billion, well below the analyst consensus of $2.11 billion. Despite the drop in sales, management noted an improvement in fuel gross margin, nonfuel revenues, nonfuel gross margin, and EBITDAR (The R is for rent). However, gallons of fuel sold declined by 3.3%. CEO Thomas O'Brien noted that the company overcame severe weather challenges and that the calendar had one less day due to Leap Day.

Now what: The winter months are historically slow for TravelCenters, and the company deserves credit for improving earnings on declining revenue, but macroeconomics seem to be against rest-stop fuel vendors, as more efficient will mean fewer stops to fill up or lower fuel sales and less of a need for companies like TravelCenters. Shares are cheap, but this could be a value trap.

Get more on TravelCenters of America. Add the company to your Watchlist here.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2415540, ~/Articles/ArticleHandler.aspx, 5/24/2016 6:10:35 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Jeremy Bowman

Fool since 2011. I write about consumer goods, the big picture, and whatever else piques my interest. Follow me on Twitter to see my latest articles, and for commentary on hot topics in retail and the broad market.

Today's Market

updated Moments ago Sponsored by:
DOW 17,706.05 213.12 1.22%
S&P 500 2,076.06 28.02 1.37%
NASD 4,861.06 95.27 2.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/24/2016 4:02 PM
TA $6.99 Up +0.10 +1.45%