NASDAQ$FWRD

Forward Air Corporation · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Forward Air's first quarter results were impacted by a weak freight market and the closing of the Omni Logistics deal. However, cost synergy realization was in line with initial diligence estimates, and preliminary April results showed early signs of improvement.

Forward Air reported a challenging first quarter in 2024, with results impacted by weak freight demand and pricing pressure. The acquisition of Omni Logistics contributed $225 million in revenues but also negatively impacted adjusted EBITDA. The company is taking steps to improve profitability, with early positive indicators seen in sequential revenue growth in April.

  • First quarter results were below expectations due to challenging market conditions and Omni's exposure to the international freight market.
  • Less-than-truckload line of business saw positive volume trends and improved freight quality metrics.
  • Sequential revenue growth was observed in April, indicating a potential turnaround.
  • Cost synergies from the Omni transaction are on track with initial estimates.

Headline financials

Total Revenue

$542M

Previous: $427M+26.9%
EPS

-$2.81

Previous: $1.37-305.1%
Expedited Freight Total Pounds

685.0M

No prior period
Expedited Freight Pounds per Day

10.7M

No prior period
Expedited Freight Total Shipments

828.0K

No prior period
Expedited Freight Shipments per Day

12.9

No prior period
Expedited Freight Weight per Shipment

827

No prior period
Expedited Freight Revenue per Hundredweight

$31.32

No prior period
Expedited Freight Revenue per Hundredweight ex Fuel

$24.15

No prior period
Expedited Freight Revenue per Shipment

$259.14

No prior period
Expedited Freight Revenue per Shipment ex Fuel

$199.78

No prior period
Intermodal Drayage Shipments

62.7K

No prior period
Drayage Revenue per Shipment

$822.00

No prior period
Capital Expenditures

-$4.97M

Previous: -$6.79M+26.8%
Free Cash Flow

-$66.7M

Previous: $29.6M-325.4%
Net Income

-$61.7M

Previous: $36.4M-269.7%
Operating Income

-$65.7M

Previous: $50.5M-230.1%
Gross Profit

$265M

Previous: $242M+9.5%
Cash & Equivalents

$152M

Previous: $32M+374.7%
Total Assets

$3.96B

Previous: $1.23B+222.8%
Stock-Based Comp

$1.57M

Previous: $2.91M-46.1%

Revenue & EPS history

Forward Air · Revenue · Quarterly

$542M

Q1 2024+26.9%vs Q1 2023
Beat estimate in 2 of 14 quarters(14%)
ActualEstimate

Revenue by segment

Forward Air · $414M total across 2 segments · Q3 2023

  • Expedited Freight
    $351M-11.2%
  • Intermodal
    $62.2M-45.7%

Forward guidance

Forward Air did not provide full year 2024 guidance but expects to share guidance on the second quarter earnings call. The company anticipates a steady increase in subsequent quarters until synergies are fully realized by the end of 2025.

Tailwinds

  • Sequential revenue growth of 6% from March 2024 to April 2024.
  • Cost synergies associated with the Omni transaction are in line with initial diligence estimates.
  • Expect to see a steady increase in EBITDA in subsequent quarters.
  • Synergies are expected to be fully realized by the end of 2025.
  • The team is focused on execution with distractions of the deal closing behind them.

Headwinds

  • First quarter results did not meet expectations.
  • Challenging market conditions persist, characterized by weak freight demand, excess carrier capacity, and pressure on pricing.
  • Omni's first quarter results were adversely impacted by its exposure to the international freight market.
  • Intermodal and truckload brokerage lines of business experienced decreased customer demand.
  • First quarter EBITDA was not reflective of run-rate synergies.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.1%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+1.2%

Avg return

30 days after

55%

37 / 67 earnings

Positive

+27.5%

Q2 2024

Best reaction

-19.8%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.1%-11.3%
Q4 2025+4.6%+0.0%-32.5%
Q3 2025+0.7%+16.1%+41.9%
Q1 2025+0.3%+9.7%+8.5%
Q4 2024-10.7%-14.0%-19.5%
Q3 2024+6.6%+3.4%+0.2%
Q2 2024+27.5%+15.9%+49.5%
Q1 2024-19.8%-22.7%-1.1%
Q4 2023-7.5%-20.8%-22.5%
Q3 2023-8.5%-5.9%-9.7%
Q2 2023-5.4%-6.3%-39.5%
Q1 2023-6.5%-7.8%-7.8%
Q4 2022-15.3%-11.1%-8.7%
Q3 2022+0.6%+4.9%+9.7%
Q2 2022+6.9%+10.0%+7.2%
Q1 2022+6.7%+8.1%+2.5%
Q4 2021-5.0%-5.5%-5.7%
Q3 2021+3.2%+11.4%+7.6%
Q2 2021+2.0%+2.9%+2.8%
Q1 2021+1.1%+11.8%+11.0%
Q4 2020+1.6%+5.8%+17.0%
Q3 2020+4.9%+11.0%+23.6%
Q2 2020-1.6%+2.8%+11.8%
Q1 2020-9.3%-11.2%-7.1%
Q4 2019-4.7%-7.1%-15.6%
Q3 2019+6.8%+8.2%+5.6%
Q2 2019+3.8%+1.4%-5.0%
Q1 2019-1.5%-6.5%-13.8%
Q4 2018+9.0%+10.2%+4.7%
Q3 2018-8.3%-7.4%-1.7%
Q2 2018+8.4%+7.6%+10.7%
Q1 2018+5.2%+3.1%+14.1%
Q4 2017-6.0%-4.5%-3.9%
Q3 2017-1.1%-2.1%-6.1%
Q2 2017-6.7%-4.8%-6.3%
Q1 2017+7.8%+4.1%+2.6%
Q4 2016+6.1%+6.8%+1.6%
Q3 2016-1.5%-0.7%+16.4%
Q2 2016+4.9%+4.4%+2.7%
Q1 2016+0.3%
Q4 2015-13.4%
Q3 2015+3.7%
Q2 2015-5.1%
Q1 2015+3.2%
Q4 2014+6.1%
Q3 2014-4.5%
Q2 2014+0.3%
Q1 2014-3.2%
Q4 2013-0.5%
Q3 2013+1.2%
Q2 2013-5.2%
Q1 2013+0.0%
Q4 2012+0.6%
Q3 2012+5.8%
Q2 2012+4.6%
Q1 2012-0.7%
Q4 2011-2.3%
Q3 2011-2.9%
Q2 2011-2.5%
Q4 2010+1.6%
Q1 2010+1.6%
Q1 2011+6.4%
Q4 2008+2.4%
Q2 2009-1.9%
Q3 2009-1.9%
Q4 2009+2.3%
Q2 2010+2.3%

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