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Knight-Swift (KNX) Q2 Earnings & Revenues Miss Estimates
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Knight-Swift Transportation Holdings Inc. (KNX - Free Report) second-quarter 2024 adjusted earnings per share (EPS) of 24 cents per share missed the Zacks Consensus Estimate of 27 cents and declined 51% year over year. KNX’s bottom line was weighed down by a $12.5 million pre-tax charge for the settlement of an auto liability claim from 2020. This settlement affected KNX’s adjusted EPS by 6 cents per share.
Total revenues of $1.846 million missed the Zacks Consensus Estimate of $1.882 million but improved 18.9% year over year. The top line increased year over year owing to the acquisition of U.S. Xpress Enterprises, Inc. (U.S. Xpress) effective Jul 1, 2023. Revenues, excluding truckload and LTL fuel surcharge, grew 18.1% year over year to $ 1.641 billion.
Total operating expenses (on a reported basis) increased 22.2% year over year to $1.78 billion.
Knight-Swift’s adjusted operating income fell 22.8% year over year.
Knight-Swift Transportation Holdings Inc. Price, Consensus and EPS Surprise
Revenues (excluding fuel surcharge and inter-segment transactions) from Truckload totaled $1.102 billion, up 33% year over year. Adjusted segmental operating income plunged 54.3% to $31.15 million. Adjusted operating ratio (operating expenses as a percentage of revenues) grew 540 basis points (bps) to 97.2%.
The Less-Than-Truckload segment generated revenues (excluding fuel surcharges) worth $263.09 million in the second quarter, up 15.1% year over year. Adjusted segmental operating income grew 8.2% to $36.96 million. Adjusted operating ratio rose 80 bps to 85.9%.
Revenues from Logistics (excluding inter-segment transactions) amounted to $131.70 million, up 11.8% year over year. Adjusted operating income decreased 40.2% to $5.92 million. The adjusted operating ratio rose 390 bps to 95.5%.
Intermodal revenues (excluding inter-segment transactions) totaled $97.52 million, down 6.5% year over year. The operating ratio (on a reported basis) fell 460 bps to 101.8%.
Liquidity
Knight-Swift exited the second quarter with cash and cash equivalents of $186.47 million compared with $204.76 million at the prior-quarter end. Long-term debt (excluding current maturities) was $1.17 billion compared with $1.19 billion at the first-quarter end.
Guidance
Knight-Swift expects third-quarter 2024 adjusted EPS in the range of 31-35 cents and fourth-quarter EPS between 32 and 36 cents. KNX expects net cash capital expenditures for 2024 in the $600-$650 million band. The tax rate is expected to be in the range of 29-30% for 2024.
So far this year, shares of KNX have lost 11.1% against the industry’s growth of 3.5%.
Image Source: Zacks Investment Research
Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share, which marginally missed the Zacks Consensus Estimate of $2.37. Earnings decreased 11.9% on a year-over-year basis. Apart from high costs, the carrier blamed the discounting pressure at the low end of the market, which hurt its pricing power, for the disappointing performance.
Revenues of $16.65 billion surpassed the Zacks Consensus Estimate of $16.25 billion and increased 6.9% year over year, driven by upbeat air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $15.41 billion, up 5.4% year over year.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported disappointing second-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate.
JBHT’s earnings of $1.32 per share missed the Zacks Consensus Estimate of $1.51 and declined 27% year over year.
JBHT’s total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $3.03 billion and fell 7% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.The downfall was owing to a 5% decrease in gross revenue per load in Intermodal (JBI) and a decline in load volume of 25% in Integrated Capacity Solutions (ICS), 9% in Truckload (JBT), and 9% in Dedicated Contract Services (DCS). These were partially offset by the 5% revenue growth of Final Mile Services (FMS), primarily driven by new contracts implemented over the past year, and a 5% increase in revenue per load in ICS.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2024 earnings per share (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. Earnings decreased 17.7% on a year-over-year basis.
Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year due to upbeat air-travel demand. This was driven by a 5.2% rise in passenger revenues (which accounted for 91.2% of the top line) to $13.680 billion. Almost 44,375 passengers traveled on UAL flights in the second quarter, up 5.8% year over year.
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Knight-Swift (KNX) Q2 Earnings & Revenues Miss Estimates
Knight-Swift Transportation Holdings Inc. (KNX - Free Report) second-quarter 2024 adjusted earnings per share (EPS) of 24 cents per share missed the Zacks Consensus Estimate of 27 cents and declined 51% year over year. KNX’s bottom line was weighed down by a $12.5 million pre-tax charge for the settlement of an auto liability claim from 2020. This settlement affected KNX’s adjusted EPS by 6 cents per share.
Total revenues of $1.846 million missed the Zacks Consensus Estimate of $1.882 million but improved 18.9% year over year. The top line increased year over year owing to the acquisition of U.S. Xpress Enterprises, Inc. (U.S. Xpress) effective Jul 1, 2023. Revenues, excluding truckload and LTL fuel surcharge, grew 18.1% year over year to $ 1.641 billion.
Total operating expenses (on a reported basis) increased 22.2% year over year to $1.78 billion.
Knight-Swift’s adjusted operating income fell 22.8% year over year.
Knight-Swift Transportation Holdings Inc. Price, Consensus and EPS Surprise
Knight-Swift Transportation Holdings Inc. price-consensus-eps-surprise-chart | Knight-Swift Transportation Holdings Inc. Quote
Segmental Results
Revenues (excluding fuel surcharge and inter-segment transactions) from Truckload totaled $1.102 billion, up 33% year over year. Adjusted segmental operating income plunged 54.3% to $31.15 million. Adjusted operating ratio (operating expenses as a percentage of revenues) grew 540 basis points (bps) to 97.2%.
The Less-Than-Truckload segment generated revenues (excluding fuel surcharges) worth $263.09 million in the second quarter, up 15.1% year over year. Adjusted segmental operating income grew 8.2% to $36.96 million. Adjusted operating ratio rose 80 bps to 85.9%.
Revenues from Logistics (excluding inter-segment transactions) amounted to $131.70 million, up 11.8% year over year. Adjusted operating income decreased 40.2% to $5.92 million. The adjusted operating ratio rose 390 bps to 95.5%.
Intermodal revenues (excluding inter-segment transactions) totaled $97.52 million, down 6.5% year over year. The operating ratio (on a reported basis) fell 460 bps to 101.8%.
Liquidity
Knight-Swift exited the second quarter with cash and cash equivalents of $186.47 million compared with $204.76 million at the prior-quarter end. Long-term debt (excluding current maturities) was $1.17 billion compared with $1.19 billion at the first-quarter end.
Guidance
Knight-Swift expects third-quarter 2024 adjusted EPS in the range of 31-35 cents and fourth-quarter EPS between 32 and 36 cents. KNX expects net cash capital expenditures for 2024 in the $600-$650 million band. The tax rate is expected to be in the range of 29-30% for 2024.
Zacks Rank and Price Performance
Currently, KNX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
So far this year, shares of KNX have lost 11.1% against the industry’s growth of 3.5%.
Image Source: Zacks Investment Research
Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share, which marginally missed the Zacks Consensus Estimate of $2.37. Earnings decreased 11.9% on a year-over-year basis. Apart from high costs, the carrier blamed the discounting pressure at the low end of the market, which hurt its pricing power, for the disappointing performance.
Revenues of $16.65 billion surpassed the Zacks Consensus Estimate of $16.25 billion and increased 6.9% year over year, driven by upbeat air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $15.41 billion, up 5.4% year over year.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported disappointing second-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate.
JBHT’s earnings of $1.32 per share missed the Zacks Consensus Estimate of $1.51 and declined 27% year over year.
JBHT’s total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $3.03 billion and fell 7% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.The downfall was owing to a 5% decrease in gross revenue per load in Intermodal (JBI) and a decline in load volume of 25% in Integrated Capacity Solutions (ICS), 9% in Truckload (JBT), and 9% in Dedicated Contract Services (DCS). These were partially offset by the 5% revenue growth of Final Mile Services (FMS), primarily driven by new contracts implemented over the past year, and a 5% increase in revenue per load in ICS.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2024 earnings per share (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. Earnings decreased 17.7% on a year-over-year basis.
Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year due to upbeat air-travel demand. This was driven by a 5.2% rise in passenger revenues (which accounted for 91.2% of the top line) to $13.680 billion. Almost 44,375 passengers traveled on UAL flights in the second quarter, up 5.8% year over year.