The expectations for TFI International's Q3 earnings per share have been adjusted downward, with subsequent years' forecasts also being revised due to lower starting points. This is mainly due to generally tepid operational updates from mid-Q3 among less-than-truckload shippers. Despite this, consistent volume trends are observed for Saia, which is expanding its network with new terminal openings.

The coverage initiation on TFI International reflects a broadly optimistic perspective on the transportation and logistics sector, suggesting that the industry's cyclical downturn may be approaching its end. With rates and margins seemingly at a low point, there is potential for significant earnings growth in the coming years as the market conditions improve. This upbeat view is reinforced by the confidence in the leadership of these companies, noting their history of judicious capital management. Moreover, the essential nature of the transportation services provided is highlighted as a factor that minimizes the risk of disruption or substitution within the North American context. Investors are advised to anticipate a cyclical recovery and focus on companies that are poised to benefit disproportionately as freight conditions become more favorable.