COMPETITION WATCH: TransForce doubles Q1 profit

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MONTREAL, Que. -- TransForce more than doubled its Q1 adjusted profit (which excludes the after-tax effect of changes in the fair value of derivatives and of items that are not in the Company's normal business) from a year ago to $12.2 million. [Full Story]

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[KeyFactor]

MONTREAL, Que. -- TransForce more than doubled its Q1 adjusted profit (which excludes the after-tax effect of changes in the fair value of derivatives and of items that are not in the Company's normal business) from a year ago to $12.2 million. [Full Story]

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Acquisitions accounted for almost 75% ($70M of the $95.2M) of the revenue increase and probably most of the improvement in operating income (EBIT). Since the timing and size of acquisitions is uncertain, investors generally do not focus on their contribution to growth...the real focus is on what the company did excluding the impact of the acquisition...this is called organic growth. I don't know enough about Transforce to say whether or not the organic growth they showed was good or bad compared to investor expectations (ie. the stock price). The stock has done well over the past two years, outperforming the S&P/TSX Capped Industrials Index. I suspect it has benefited from more optimistic investor sentiment over this time and improved outlook for the general economy.