NYSE$KNX

Knight-Swift Transportation Holdings Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Knight-Swift Transportation Holdings Inc. reported a decrease in revenue and earnings due to soft demand and competitive bidding season.

Knight-Swift Transportation Holdings Inc. reported a decrease in net income attributable to Knight-Swift to $104.3 million, with GAAP earnings per diluted share at $0.64. Consolidated total revenue decreased by 10.4% to $1.6 billion, and consolidated operating income decreased by 51.4% to $144.8 million.

  • Consolidated total revenue was $1.6 billion, a 10.4% decrease from Q1 2022.
  • GAAP earnings per diluted share were $0.64, compared to $1.25 in Q1 2022.
  • Adjusted EPS was $0.73, compared to $1.35 in Q1 2022.
  • Free cash flow was $144.2 million.

Headline financials

Total Revenue

$1.64B

Previous: $1.83B-10.4%
EPS (adj)

$0.73

Previous: $1.35-45.9%
Miles per Tractor

18.4K

Previous: 18.9K-2.7%
LTL Shipments per Day

17.7K

Previous: 18.8K-5.7%
LTL Weight per Shipment

1.1K

Previous: 1.1K-3.4%
LTL Revenue per Shipment

$189.31

Previous: $178.43+6.1%
LTL Revenue per CWT

$17.84

Previous: $16.25+9.8%
Logistics Revenue per Load

$1.72K

Previous: $2.7K-36.4%
Intermodal Load Count

34.2K

Previous: 31.5K+8.5%
Capital Expenditures

-$260M

Previous: -$165M-57.8%
Free Cash Flow

-$156M

Previous: $43.4M-459.9%
Net Income

$104M

Previous: $208M-49.9%
Operating Income

$145M

Previous: $298M-51.4%
Gross Profit

$1.19B

Previous: $1.41B-16.1%
Cash & Equivalents

$191M

Previous: $243M-21.3%
Total Assets

$10.9B

Previous: $10.7B+2.3%

Revenue & EPS history

Knight-Swift · Revenue · Quarterly

$1.64B

Q1 2023-10.4%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Knight-Swift · $1.52B total across 4 segments · Q1 2023

  • Truckload
    $1.01B-6.3%
  • LTL
    $255M+0.1%
  • Logistics
    $138M-51.0%
  • Intermodal
    $111M+1.2%

Forward guidance

Knight-Swift now expects that Adjusted EPS for full-year 2023 will range from $3.35 to $3.55, which does not reflect the inclusion of U.S. Xpress pending the close of the acquisition and is an update from our previously-disclosed range of $4.05 to $4.25.

Tailwinds

  • Truckload tractor count stable with miles per tractor improving on a year-over-year basis in the second half of the year
  • LTL revenue, excluding fuel surcharge increases modestly year-over-year with relatively stable margin profile and typical seasonality
  • Logistics volume and revenue per load remains under pressure into the second quarter before improving in the back half of the year, with an operating ratio of approximately 90 for the year
  • Intermodal Operating Ratio in the mid 90's for the full year with volumes up year over year
  • Non-reportable to have modest revenue growth for the year and quarterly operating income run rate in the low to mid teens for the balance of year

Headwinds

  • Truckload rates continue to be pressured, with a year-over-year decrease in overall revenue per mile of high single digits for the year
  • Logistics volume and revenue per load remains under pressure into the second quarter before improving in the back half of the year
  • Reflecting reduced exposure to third party insurance risk
  • Easing trailer lease demand from lower inventory overhang and muted freight conditions
  • Equipment gains to be in the range of $15 million to $20 million quarterly

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

-0.4%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+1.8%

Avg return

30 days after

45%

30 / 66 earnings

Positive

+11.8%

Q3 2021

Best reaction

-9.4%

Q4 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.8%-0.5%+7.3%
Q4 2025+2.7%-5.2%+6.5%
Q3 2025-7.2%-7.7%-6.8%
Q2 2025-1.3%-2.3%-3.2%
Q1 2025+1.9%-1.0%+8.2%
Q4 2024+4.7%+6.4%-5.2%
Q3 2024-1.6%+1.9%+9.1%
Q2 2024+5.3%+5.7%+9.6%
Q1 2024-4.2%-4.8%-3.1%
Q4 2023+1.5%+1.1%+2.1%
Q3 2023+8.3%+6.2%+8.8%
Q2 2023-0.1%+2.5%+0.0%
Q1 2023-0.5%-3.2%-3.9%
Q4 2022+3.0%+3.0%+0.3%
Q3 2022-6.9%-3.0%+9.6%
Q2 2022+3.0%+0.6%+9.7%
Q1 2022+3.6%+5.2%-2.1%
Q4 2021-1.5%+2.2%-1.9%
Q3 2021+11.8%+9.3%+12.3%
Q2 2021+0.2%+1.5%+3.8%
Q1 2021-5.0%-6.2%-1.9%
Q4 2020-8.2%-10.1%-2.9%
Q3 2020+0.6%-0.5%+6.2%
Q2 2020+1.0%-1.4%+3.7%
Q1 2020+0.4%+6.2%+13.4%
Q4 2019+5.2%+3.2%-11.7%
Q3 2019+0.1%+0.6%-2.8%
Q2 2019-3.2%-1.9%-14.8%
Q1 2019-0.8%-2.5%-14.3%
Q4 2018+10.9%+6.2%+14.9%
Q3 2018+10.6%+3.9%+8.1%
Q2 2018-7.4%-7.5%-5.8%
Q1 2018-6.4%-7.1%-3.7%
Q4 2017+6.6%+3.0%+4.0%
Q3 2017-6.4%-6.9%+3.5%
Q2 2017-4.9%-3.8%+1.3%
Q1 2017+0.1%-1.7%-4.6%
Q4 2016-1.5%+0.6%-3.9%
Q3 2016+3.3%+4.3%+25.4%
Q2 2016+2.8%+1.2%-2.5%
Q1 2016+0.1%
Q4 2015-5.9%
Q3 2015-6.4%
Q2 2015-7.2%
Q1 2015-2.9%
Q4 2014-9.4%
Q3 2014-2.0%
Q2 2014+1.6%
Q1 2014-2.0%
Q4 2013+3.2%
Q3 2013+1.1%
Q2 2013+1.1%
Q1 2013+1.8%
Q4 2012-2.6%
Q3 2012-0.7%
Q2 2012-1.7%
Q1 2011-2.2%
Q1 2012-0.6%
Q4 2011-1.4%
Q4 2009-1.4%
Q2 2011-1.4%
Q3 2011-4.5%
Q3 2010-4.5%
Q2 2010-0.5%
Q4 2010-0.5%
Q1 2010+1.8%

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