NASDAQ$HTLD

Heartland Express Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported a net loss due to a weak freight environment and strategic operational changes, including targeting unprofitable customers and lanes.

Heartland Express reported a decrease in net income and operating income for Q3 2023, impacted by a weak freight environment and strategic operational changes. The company focused on unprofitable customers and lanes, which hindered financial performance despite increased operating revenue. Recent acquisitions also presented operating challenges.

  • Operating revenue increased by 7.7% compared to Q3 2022.
  • Net loss was $10.7 million, a significant decrease compared to a net income of $24.4 million in Q3 2022.
  • Basic loss per share was $0.14, compared to earnings per share of $0.31 in the same period last year.
  • Strategic changes targeted unprofitable customers and lanes to improve long-term profitability.

Headline financials

Total Revenue

$295M

Previous: $274M+7.7%
EPS (adj)

-$0.14

Previous: $0.31-145.2%
Operating Ratio

102.5%

Previous: 87.3%+17.4%
Capital Expenditures

-$177M

Previous: -$91.8M-92.6%
Free Cash Flow

-$188M

Previous: -$67.4M-178.3%
Net Income

-$10.7M

Previous: $24.4M-143.8%
Operating Income

-$7.44M

Previous: $34.7M-121.4%
Gross Profit

$278M

Previous: $262M+6.4%
Cash & Equivalents

$20.1M

Previous: $64.8M-69.0%
Total Assets

$1.58B

Previous: $1.7B-7.4%
Stock-Based Comp

$500K

Previous: $200K+150.0%

Revenue & EPS history

Heartland Express · Revenue · Quarterly

$295M

Q3 2023+7.7%vs Q3 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

The company anticipates that strategic changes implemented during the third quarter of 2023 will improve future performance, although current financial results do not yet reflect these efforts. They expect net capital expenditures of approximately $60 to $65 million for tractors and trailers and expect to recognize approximately $16 million of gains on disposition of equipment during the calendar year of 2023.

Tailwinds

  • Strategic changes expected to improve future performance.
  • Commitment to providing the best service for customers.
  • Commitment to taking care of professional drivers and supporting staff.
  • Expanded scale and flexibility from recent acquisitions.
  • Repaid $135.0 million of variable rate term debt (CFI acquisition) and $16.4 million of fixed rate equipment financing liabilities (Smith Transport acquisition).

Headwinds

  • Weak freight environment.
  • Operating challenges following acquisitions.
  • Rising fuel costs.
  • Current financial results do not reflect the expected improvements from strategic changes.
  • Net loss reported for the quarter.

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 Q3 2023

Historical avgQ3 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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