Knight-Swift Transportation Holdings (NYSE:KNX)

Knight-Swift Transportation Holdings (NYSE:KNX) shares slid sharply in Wednesday’s extended trading after missing EPS estimates and paring full-year forecasts.

finviz dynamic chart for KNX

The Arizona-based transportation company posted $1.27 in adjusted earnings per share alongside a 15.2% jump in revenue from the prior year to $1.89B. While the latter figure was in-line with expectations, the former came up $0.05 short of analyst consensus. A 400 basis point increase in the operating ratio for the Truckload segment was blamed for a drop in operating income. 

“We continue to experience inflationary pressures in driver-related costs, maintenance, and insurance that offset the improvements in revenue per tractor, resulting in a 14.9% reduction in Adjusted Operating Income,” an 8-K filing explained. 

Amid the expectations of continued deterioration in macroeconomic conditions, CEO David Jackson moved to temper full-year guidance. Adjusted EPS for full-year is now expected to range from $5.17 to $5.22 from a prior range of $5.30 to $5.45. 

“Our operating results remained strong across each of our reportable segments, despite a changing freight environment that muted typical seasonal patterns toward the end of the third quarter. These muted trends have continued into October as supply chains appear to be catching up and adjusting for uncertainty in consumer demand,” Jackson commented. “These conditions have begun to reduce supply, particularly with small carriers, who have experienced materially declining spot rates combined with significant inflationary operating costs. If these trends continue, we expect truckload supply to rapidly exit the market.”

Shares of the transportation company fell 4.03% in after hours trading on Wednesday.

Leave a Reply

Your email address will not be published. Required fields are marked *