NASDAQ$HTLD

Heartland Express Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported revenues and earnings increased due to acquisitions but were impacted by lower freight demand and challenges in integrating acquired companies.

Heartland Express reported a significant increase in operating revenue due to recent acquisitions, but net income and earnings per share decreased compared to the previous year due to a gain on sale of a terminal location in the prior year and current freight environment.

  • Operating revenue increased by 63.0% compared to the same quarter last year, driven by acquisitions.
  • Net income decreased significantly due to the absence of a one-time gain from the sale of a terminal and current freight environment.
  • Operating ratio was 94.7%, and the non-GAAP adjusted operating ratio was 93.4%.
  • The company paid down approximately $146 million of outstanding debt and financing liabilities related to acquisitions.

Headline financials

Total Revenue

$306M

Previous: $188M+63.0%
EPS (adj)

$0.10

Previous: $0.29-65.5%
Operating Ratio

94.7%

Previous: 44.1%+114.7%
Capital Expenditures

-$108M

Previous: -$50.6M-113.6%
Free Cash Flow

-$100M

Previous: $26.3M-480.5%
Net Income

$7.77M

Previous: $76.9M-89.9%
Operating Income

$16.2M

Previous: $105M-84.6%
Gross Profit

$290M

Previous: $182M+59.6%
Cash & Equivalents

$46.3M

Previous: $172M-73.1%
Total Assets

$1.6B

Previous: $1.11B+43.4%
Stock-Based Comp

$200K

No prior period

Revenue & EPS history

Heartland Express · Revenue · Quarterly

$306M

Q2 2023+63%vs Q2 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 quarter and looks to the holiday season for potential improvements.

Tailwinds

  • Commitment to ongoing investments in drivers and the company.
  • Ensuring stability for all employees.
  • Rewarding level of compensation.
  • Providing equipment and tools for a safe and successful career.
  • Well positioned for the future as Heartland Express, Millis Transfer, Smith Transport, and CFI.

Headwinds

  • Expects volatile freight demand for at least the next quarter of 2023.
  • Freight demand levels continue to be lower than expectations for optimal operations.
  • Challenged with driving needed operational improvements at both CFI and Smith Transport given the current freight environment.
  • Freight volumes began leveling out near the end of the first quarter of 2023, which followed the strong freight environment for the previous two years.
  • No meaningful improvement in general freight demand during the second quarter of 2023.

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 Q2 2023

Historical avgQ2 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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