NASDAQ$HTLD

Heartland Express Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported a decrease in net income and earnings per share due to a weak freight environment, but achieved record annual operating revenue.

Heartland Express reported Q4 2023 financial results with a decrease in net income and earnings per share compared to Q4 2022, attributed to a weak freight environment and excess industry capacity. However, the company achieved record annual operating revenue of $1.2 billion, driven by recent acquisitions.

  • Net income decreased to $5.1 million, with basic earnings per share at $0.06.
  • Operating revenue reached $275.3 million.
  • The company strategically divested certain real estate assets to better align with its freight pattern.
  • Debt was reduced to $300 million following $114.1 million in debt payments during the year.

Headline financials

Total Revenue

$275M

Previous: $355M-22.4%
EPS (adj)

$0.06

Previous: $0.20-70.0%
Capital Expenditures

$31.7M

Previous: $68.8M-53.8%
Free Cash Flow

$9.08M

Previous: $13.4M-32.3%
Net Income

$5.1M

Previous: $15.5M-67.1%
Operating Income

$10.7M

Previous: $26.2M-59.2%
Gross Profit

$2.9M

Previous: $107M-97.3%
Stock-Based Comp

$700K

Previous: $900K-22.2%

Revenue & EPS history

Heartland Express · Revenue · Quarterly

$275M

Q4 2023-22.4%vs Q4 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 expects to improve its consolidated operating results within three to four years following the 2022 acquisitions to align with its historical operational results and remains committed to paying down debt.

Tailwinds

  • Strategic changes implemented during 2023 are expected to improve operational readiness ahead of future expected freight demand growth.
  • Enhanced scale provides a better strategic position given the cyclical nature of the industry.
  • Enhanced scale has allowed the company to increase capacity, enhance customer offerings, and further diversify its customer base.
  • Opportunity to upgrade the real estate portfolio of terminal locations.
  • Committed to paying down debt.

Headwinds

  • Continued weak freight environment.
  • Excess industry capacity.
  • Financial results pressured to a level below historical results and management expectations.
  • Lower freight volumes compared to the same quarter a year ago.
  • Increase in empty miles compared to the same quarter a year ago.

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 Q4 2023

Historical avgQ4 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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