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Knight-Swift Transportation Holdings Inc.’s (KNX - Free Report) first-quarter 2022 earnings (excluding 10 cents from non-recurring items) of $1.35 per share surpassed the Zacks Consensus Estimate of $1.26. The bottom line surged 62.7% from the first-quarter 2021 figure, aided by higher revenues.
Total revenues of $1,827 million outperformed the Zacks Consensus Estimate of $1,746.8 million. The top line jumped 49.4% year over year, driven mainly by a massive increase in revenues at the Logistics segment.
Total operating expenses (on a reported basis) surged 44% year over year to $1.53 billion. This increase was mainly due to 61.2% escalation in fuel expenses as oil price moves north. Salaries, wages and benefits expenses climbed 44.7% year over year. Knight-Swift’s adjusted operating income rose 82.7% year over year.
KnightSwift Transportation Holdings Inc. Price, Consensus and EPS Surprise
Revenues (excluding fuel surcharge and inter-segment transactions) in the Truckload segment totaled $941.5 million, up 7.9% year over year. Results were driven by an 8.5% increase in average revenue per tractor. Average revenue per tractor was strong in the quarter owing to a 9.4% increase in revenue per loaded mile (excluding fuel surcharge and intersegment transactions). Adjusted segmental operating income rose 29.4% to $205.4 million. Adjusted operating ratio (operating expenses as a percentage of revenues) improved 360 basis points to 78.2%.
Revenues in the Logistics segment (excluding inter-segment transactions) amounted to $280.2 million, up more than 100% year over year owing to the 76.9% increase in load count and a 36.8% rise in revenue per load. Adjusted operating ratio improved to 85.7% in the first quarter from 93.5% in the year-ago period. Segmental adjusted operating income surged more than 400% to $39.9 million.
Revenues in the Intermodal segment (excluding inter-segment transactions) totaled $109.2 million, up 2.1% year over year. Persistent chassis allocations and network fluidity induced a decline in load count but contributed to a 35.9% rise in revenue per load. Segmental operating ratio (on a reported basis) improved to 86.1% in the reported quarter from 96.8% in the year-ago quarter.
The Less-Than-Truckload (LTL) segment, which includes the results of AAA Cooper Transportation, a leading LTL carrier acquired by Knight-Swift in July 2021, generated revenues (excluding fuel surcharges) worth $214.7 million in the March quarter. The segment also includes the results of Midwest Motor Express, acquired last December. Segmental operating ratio (on an adjusted basis) was 85.9%.
Other Details
Knight-Swift, currently carrying a Zacks Rank #3 (Hold), exited the first quarter with cash and cash equivalents of $242.9 million compared with $261 million at the end of 2021. Free cash flow for the first quarter of 2022 was $352.4 million. During the March quarter, KNX returned $150 million to its shareholders in the form of share repurchases and $20.1 million as dividends. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2022 Guidance
For the ongoing year, Knight-Swift now expects adjusted earnings per share in the range of $5.20-$5.40 (previous guidance: $5.10-$5.30). The midpoint of the guided range ($5.30) is higher than the Zacks Consensus Estimate of $5.20.
Knight-Swift expects double-digit truckload contract rate increases in 2022. Intermodal volumes are anticipated to decline in the first half of the year, while the same is predicted to increase in the latter half. Logistics revenues are forecast to grow more than 30% in the year (previous guidance: 20%). KNX expects a rise in LTL revenues and margins from the respective year-ago reported figures. Net cash capital expenditures for 2022 are estimated in the band of $550-$600 million. The tax rate is expected to be 25% for 2022.
J.B. Hunt reported better-than-expected first-quarter 2022 earnings numbers. Quarterly earnings of $2.29 per share surpassed the Zacks Consensus Estimate of $1.91. The bottom line surged 67.2% year over year on the back of higher revenues across all segments.
Total operating revenues of $3,488.6 million also outperformed the Zacks Consensus Estimate of $3,260.5 million. The top line jumped 33.3% year over year. JBHT currently carries a Zacks Rank #3.
CSX Corp’s first-quarter 2022 earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny despite the decrease in overall volumes as supply-chain issues continue to dent results. The bottom line improved 25.81% year over year owing to higher revenues, aided by increased shipping rates.
Total revenues of $3,413 million outperformed the Zacks Consensus Estimate of $3291.2 million. The top line increased 21.33% year over year. CSX carries a Zacks Rank of 3 at present.
United Airlines incurred a loss of $4.24 per share in the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $4.19. This is the ninth consecutive quarterly loss incurred as coronavirus concerns continue to weigh on air-travel demand.
Operating revenues of $7,566 million also fell short of the Zacks Consensus Estimate of $7,657.2 million. UAL is presently Zacks #3 Ranked.
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Knight-Swift's (KNX) Q1 Earnings Beat Mark, Increase Y/Y
Knight-Swift Transportation Holdings Inc.’s (KNX - Free Report) first-quarter 2022 earnings (excluding 10 cents from non-recurring items) of $1.35 per share surpassed the Zacks Consensus Estimate of $1.26. The bottom line surged 62.7% from the first-quarter 2021 figure, aided by higher revenues.
Total revenues of $1,827 million outperformed the Zacks Consensus Estimate of $1,746.8 million. The top line jumped 49.4% year over year, driven mainly by a massive increase in revenues at the Logistics segment.
Total operating expenses (on a reported basis) surged 44% year over year to $1.53 billion. This increase was mainly due to 61.2% escalation in fuel expenses as oil price moves north. Salaries, wages and benefits expenses climbed 44.7% year over year. Knight-Swift’s adjusted operating income rose 82.7% year over year.
KnightSwift Transportation Holdings Inc. Price, Consensus and EPS Surprise
KnightSwift Transportation Holdings Inc. price-consensus-eps-surprise-chart | KnightSwift Transportation Holdings Inc. Quote
Segmental Results
Revenues (excluding fuel surcharge and inter-segment transactions) in the Truckload segment totaled $941.5 million, up 7.9% year over year. Results were driven by an 8.5% increase in average revenue per tractor. Average revenue per tractor was strong in the quarter owing to a 9.4% increase in revenue per loaded mile (excluding fuel surcharge and intersegment transactions). Adjusted segmental operating income rose 29.4% to $205.4 million. Adjusted operating ratio (operating expenses as a percentage of revenues) improved 360 basis points to 78.2%.
Revenues in the Logistics segment (excluding inter-segment transactions) amounted to $280.2 million, up more than 100% year over year owing to the 76.9% increase in load count and a 36.8% rise in revenue per load. Adjusted operating ratio improved to 85.7% in the first quarter from 93.5% in the year-ago period. Segmental adjusted operating income surged more than 400% to $39.9 million.
Revenues in the Intermodal segment (excluding inter-segment transactions) totaled $109.2 million, up 2.1% year over year. Persistent chassis allocations and network fluidity induced a decline in load count but contributed to a 35.9% rise in revenue per load. Segmental operating ratio (on a reported basis) improved to 86.1% in the reported quarter from 96.8% in the year-ago quarter.
The Less-Than-Truckload (LTL) segment, which includes the results of AAA Cooper Transportation, a leading LTL carrier acquired by Knight-Swift in July 2021, generated revenues (excluding fuel surcharges) worth $214.7 million in the March quarter. The segment also includes the results of Midwest Motor Express, acquired last December. Segmental operating ratio (on an adjusted basis) was 85.9%.
Other Details
Knight-Swift, currently carrying a Zacks Rank #3 (Hold), exited the first quarter with cash and cash equivalents of $242.9 million compared with $261 million at the end of 2021. Free cash flow for the first quarter of 2022 was $352.4 million. During the March quarter, KNX returned $150 million to its shareholders in the form of share repurchases and $20.1 million as dividends. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2022 Guidance
For the ongoing year, Knight-Swift now expects adjusted earnings per share in the range of $5.20-$5.40 (previous guidance: $5.10-$5.30). The midpoint of the guided range ($5.30) is higher than the Zacks Consensus Estimate of $5.20.
Knight-Swift expects double-digit truckload contract rate increases in 2022. Intermodal volumes are anticipated to decline in the first half of the year, while the same is predicted to increase in the latter half. Logistics revenues are forecast to grow more than 30% in the year (previous guidance: 20%). KNX expects a rise in LTL revenues and margins from the respective year-ago reported figures. Net cash capital expenditures for 2022 are estimated in the band of $550-$600 million. The tax rate is expected to be 25% for 2022.
Earnings Snapshots
Within the broader Transportation sector, J.B. Hunt Transport Services (JBHT - Free Report) , CSX Corporation (CSX - Free Report) and United Airlines (UAL - Free Report) recently reported first-quarter 2022 results.
J.B. Hunt reported better-than-expected first-quarter 2022 earnings numbers. Quarterly earnings of $2.29 per share surpassed the Zacks Consensus Estimate of $1.91. The bottom line surged 67.2% year over year on the back of higher revenues across all segments.
Total operating revenues of $3,488.6 million also outperformed the Zacks Consensus Estimate of $3,260.5 million. The top line jumped 33.3% year over year. JBHT currently carries a Zacks Rank #3.
CSX Corp’s first-quarter 2022 earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny despite the decrease in overall volumes as supply-chain issues continue to dent results. The bottom line improved 25.81% year over year owing to higher revenues, aided by increased shipping rates.
Total revenues of $3,413 million outperformed the Zacks Consensus Estimate of $3291.2 million. The top line increased 21.33% year over year. CSX carries a Zacks Rank of 3 at present.
United Airlines incurred a loss of $4.24 per share in the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $4.19. This is the ninth consecutive quarterly loss incurred as coronavirus concerns continue to weigh on air-travel demand.
Operating revenues of $7,566 million also fell short of the Zacks Consensus Estimate of $7,657.2 million. UAL is presently Zacks #3 Ranked.