NASDAQ$HTLD

Heartland Express Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Heartland Express's financial performance driven by financial discipline amidst a challenging freight environment, with strategic operational changes at Smith Transport and Contract Freighters, Inc. initiated.

Heartland Express reported a strong increase in operating revenue, driven by recent acquisitions, but experienced a decrease in net income and earnings per share compared to the same period last year. The company is focused on improving the financial results of Smith Transport and CFI, while managing lower freight demand and freight rate pressures.

  • Operating revenue increased by 118.8% compared to the same period in the prior year, reaching $330.9 million.
  • Net income was $12.6 million, with basic earnings per share of $0.16.
  • The company repaid approximately $129 million of outstanding debt and financing liabilities since the acquisitions completed in 2022.
  • The company ended the quarter with total assets of $1.6 billion and stockholders' equity of $866.6 million.

Headline financials

Total Revenue

$331M

Previous: $151M+118.8%
EPS (adj)

$0.16

Previous: $0.21-23.8%
Operating Ratio

93.1%

Previous: 85.2%+9.3%
Net Loss Margin

3.8%

Previous: 11.1%-65.8%
Capital Expenditures

-$42.1M

Previous: -$22M-91.3%
Free Cash Flow

-$29.5M

Previous: -$5.25M-462.2%
Net Income

$12.6M

Previous: $16.8M-24.8%
Operating Income

$22.9M

Previous: $22.4M+2.2%
Gross Profit

$316M

Previous: $146M+116.1%
Cash & Equivalents

$55.5M

Previous: $187M-70.3%
Total Assets

$1.61B

Previous: $947M+70.3%
Stock-Based Comp

$200K

Previous: $300K-33.3%

Revenue & EPS history

Heartland Express · Revenue · Quarterly

$331M

Q1 2023+118.8%vs Q1 2022
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

Heartland Express · $19.5M total across 1 segment · Q1 2020

  • Fuel Surcharge
    $19.5M+14.7%

Forward guidance

Heartland Express anticipates volatile freight demand for at least the next two quarters of 2023 but remains committed to ongoing investments in its drivers and company.

Tailwinds

  • Committed to ongoing investments in drivers and the company.
  • Ensuring stability for all employees through rewarding compensation.
  • Providing equipment and tools for safe and successful careers.
  • Excited about the future and believes they are stronger together.
  • Navigating the ups and downs of the industry with significant opportunities ahead.

Headwinds

  • Freight demand is much lower than standard seasonal changes.
  • Expects volatile freight demand for at least the next two quarters of 2023.
  • Trend of lower freight demand and freight rate pressure will likely continue.
  • This trend will likely have significant impacts on the available capacity within the industry.
  • Freight demand is significantly less than it has been in the last two years.

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.2%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+1.4%

Avg return

30 days after

46%

32 / 69 earnings

Positive

+12.7%

Q2 2018

Best reaction

-14.0%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.4%+10.2%+19.3%
Q4 2025+3.1%+6.5%+0.4%
Q3 2025-1.1%-3.1%-1.9%
Q2 2025-1.4%+0.0%+0.5%
Q1 2025+1.3%+9.1%+3.6%
Q4 2024-2.2%-3.1%-13.7%
Q3 2024-3.0%-4.1%+10.4%
Q2 2024+2.7%+5.7%-2.2%
Q1 2024+0.5%+0.8%+10.2%
Q4 2023-1.7%-4.1%-4.8%
Q3 2023-14.0%-18.9%-7.8%
Q2 2023-7.8%-7.5%-9.8%
Q1 2023-0.1%+0.2%+8.6%
Q4 2022-7.2%-7.5%-4.2%
Q3 2022-8.0%-7.2%+9.8%
Q2 2022+5.1%+9.0%+10.4%
Q1 2022+3.9%+4.7%+1.5%
Q4 2021-0.7%-1.3%-8.9%
Q3 2021+1.7%+2.5%+6.6%
Q2 2021-1.1%-0.7%-0.8%
Q1 2021-2.7%-5.6%-6.8%
Q4 2020+1.9%+3.0%-1.5%
Q3 2020-7.7%-6.3%-6.7%
Q2 2020+6.3%+3.2%-0.6%
Q1 2020+1.6%+5.9%+8.1%
Q4 2019-4.1%-6.8%-1.9%
Q3 2019-6.4%-2.4%-4.0%
Q2 2019+7.0%+6.5%+5.7%
Q1 2019+5.9%+4.8%+1.3%
Q4 2018-1.0%-0.5%+5.0%
Q3 2018+5.6%+1.3%+6.9%
Q2 2018+12.7%+7.0%+7.2%
Q1 2018+1.1%-0.4%+5.1%
Q4 2017+3.5%-0.4%-6.5%
Q3 2017-11.0%-12.2%-11.3%
Q2 2017-2.0%-1.0%+5.5%
Q1 2017+5.3%+6.0%-1.3%
Q4 2016-2.0%-0.7%-0.5%
Q3 2016-0.7%-0.2%+18.2%
Q2 2016+2.7%+2.6%+6.4%
Q1 2016+9.3%
Q4 2015+4.6%
Q3 2015-12.7%
Q2 2015+10.6%
Q1 2015-5.7%
Q4 2014-4.9%
Q3 2014-3.8%
Q2 2014+8.6%
Q1 2014-3.6%
Q4 2013+0.9%
Q3 2013+2.0%
Q2 2013-0.1%
Q1 2013+0.2%
Q4 2012+4.1%
Q3 2012+0.4%
Q2 2012-0.1%
Q1 2012+1.7%
Q4 2011-0.9%
Q3 2011-1.2%
Q2 2011-7.4%
Q1 2010-2.8%
Q1 2011+1.8%
Q4 2008-2.4%
Q4 2010-2.4%
Q3 2010-0.7%
Q3 2009-0.7%
Q2 2010+1.5%
Q2 2009+1.5%
Q4 2009+1.5%

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