Knight-Swift's Q3 2023 Earnings: Surprises, Challenges, and Outlook

Knight-Swift Transportation (KNX) shares jumped 11.75% after its earnings report on Friday. However, the company's overall numbers are a mixed bag.

Earnings Highlights:

• EPS sits at 41 cents, exceeding the 39-cent forecast.

Revenue Details:

• Revenues reached $2,019.9 million, surpassing the anticipated $1,915.4 million, a 21.9% increase YoY.

Challenges Afoot:

• EPS plummeted by 67.7% YoY.

• Operating expenses ballooned by 18.8% to $1.94 billion.

• Adjusted operating income experienced a 60.8% decrease.

Trucking Insight:

• Truckload sector shined, with revenues climbing 21.9%, yet adjusted operating income sank by 65.8%.

• Less-Than-Truckload displayed promising revenue and operating income trends but with a marginal upswing in operating ratio.

• Logistics faced headwinds, registering a 24.5% decline in revenue and a significant 650 bps jump in operating ratio.

• Intermodal also grappled with challenges: revenues receded by 22.6%, and operating ratio surged to 104.5%.

CEO David Jackson discussed challenges in the truckload freight market and the potential for positive rate pressure, predicting a market turnaround. The company focuses on improving performance, growing the less-than-truckload business, and turning around U.S. Xpress Enterprises, its recent acquisition.

Sources: Transport Topics | ZACKS