NASDAQ$FWRD

Forward Air Corporation · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported record quarterly income from operations and net income per diluted share.

Forward Air Corporation reported strong Q3 2021 results, achieving record quarterly income from operations of $42.5 million and net income per diluted share of $1.12. The company's revenue grew by 26% year-over-year, driven by strategic freight management and strong operating margin expansion in the Expedited Freight segment.

  • Achieved highest ever monthly net income for the month of September.
  • Reported record quarterly income from operations of $42.5 million.
  • Net income per diluted share reached a record $1.12.
  • Completed a process of cleansing inefficient freight and replacing with higher quality freight.

Headline financials

Total Revenue

$420M

Previous: $332M+26.4%
EPS (adj)

$1.14

Previous: $0.61+86.9%
Drayage Revenue per Shipment

$723.00

No prior period
Capital Expenditures

-$23M

Previous: -$16.4M-40.0%
Free Cash Flow

$521K

Previous: $208K+150.5%
Net Income

$23.5M

Previous: $16.6M+41.4%
Operating Income

$42.5M

Previous: $23.5M+80.7%
Gross Profit

$214M

Previous: $159M+34.7%
Cash & Equivalents

$51.9M

Previous: $43M+20.8%
Total Assets

$1.07B

Previous: $1.05B+2.1%
Stock-Based Comp

$2.6M

Previous: $2.35M+10.9%

Revenue & EPS history

Forward Air · Revenue · Quarterly

$420M

Q3 2021+26.4%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Forward Air · $420M total across 2 segments · Q3 2021

  • Expedited Freight
    $342M+20.5%
  • Intermodal
    $78.2M+59.7%

Forward guidance

The Company’s fourth quarter 2021 continuing operations guidance expects year-over-year revenue growth of 23% to 27% and net income per diluted share to be between $1.25 to $1.29.

Tailwinds

  • Year-over-year revenue growth will be 23% to 27%
  • Net income per diluted share to be between $1.25 to $1.29
  • Volumes in the fourth quarter 2021 to exceed volumes for the same period of 2020.
  • Momentum is expected to continue into 2022 and 2023.
  • Full year 2023 targets include revenue of $2.0 billion to $2.6 billion and net income per diluted share of $6.30 to $6.70.

Headwinds

  • Economic factors such as recessions, inflation, higher interest rates and downturns in customer business cycles
  • The COVID-19 pandemic
  • Ability to manage our growth and ability to grow, in part, through acquisitions, while being able to successfully integrate such acquisitions
  • Ability to secure terminal facilities in desirable locations at reasonable rates
  • More limited liquidity than expected which limits our ability to make key investments

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 Q3 2021

Historical avgQ3 2021

+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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