NYSE$KNX

Knight-Swift Transportation Holdings Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Knight-Swift reported a decrease in revenue and earnings for Q2 2023 due to soft demand and pressure on pricing, while LTL segment remained a bright spot.

Knight-Swift Transportation Holdings Inc. reported a decrease in net income attributable to Knight-Swift to $63.3 million, with GAAP earnings per diluted share at $0.39. Consolidated total revenue decreased by 20.8% to $1.6 billion, and consolidated operating income decreased by 71.1% to $94.0 million.

  • Truckload Adjusted Operating Ratio was 91.8% with a 15.5% year-over-year decrease in revenue, excluding fuel surcharge and intersegment transactions.
  • LTL Adjusted Operating Ratio was 85.1%, with revenues, excluding fuel surcharge and intersegment transactions, increasing 2.0% year-over-year.
  • Logistics Adjusted Operating Ratio was 91.6% with a gross margin of 19.4%, while load count decreased 35.0% year-over-year.
  • Intermodal segment had a 106.4% operating ratio, as revenue per load declined 24.5%, partially offset by load count growth of 4.0% year-over year.

Headline financials

Total Revenue

$1.55B

Previous: $1.96B-20.8%
EPS (adj)

$0.49

Previous: $1.41-65.2%
Miles per Tractor

18.9K

Previous: 19.5K-3.3%
LTL Shipments per Day

18.9K

Previous: 19.7K-3.9%
LTL Weight per Shipment

1.1K

Previous: 1.1K-0.9%
LTL Revenue per Shipment

$160.66

Previous: $151.64+5.9%
LTL Revenue per CWT

$17.77

Previous: $17.91-0.8%
Logistics Revenue per Load

$1.65K

Previous: $2.26K-26.8%
Intermodal Load Count

37.9K

Previous: 36.5K+4.0%
Capital Expenditures

-$518M

Previous: -$296M-75.2%
Free Cash Flow

-$455M

Previous: -$76M-497.8%
Net Income

$63.3M

Previous: $219M-71.1%
Operating Income

$94M

Previous: $326M-71.1%
Gross Profit

$1.12B

Previous: $1.46B-23.7%
Cash & Equivalents

$229M

Previous: $198M+15.6%
Total Assets

$11.4B

Previous: $10.7B+6.7%

Revenue & EPS history

Knight-Swift · Revenue · Quarterly

$1.55B

Q2 2023-20.8%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Knight-Swift · $1.45B total across 4 segments · Q2 2023

  • Truckload
    $954M-19.8%
  • LTL
    $267M-5.9%
  • Logistics
    $120M-51.8%
  • Intermodal
    $104M-21.5%

Forward guidance

Knight-Swift now expects that Adjusted EPS for full-year 2023 will range from $2.10 to 2.30, which includes a projected U.S. Xpress loss of $0.25 to $0.30 post acquisition, inclusive of incremental interest expense associated with the acquisition.

Tailwinds

  • Truckload tractor count to be down modestly with miles per tractor improving slightly 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 sequential margin profile subject to typical seasonality
  • Logistics volume and revenue per load remains under pressure in the third quarter before improving sequentially in the fourth quarter, with an operating ratio of approximately 90% for the year
  • Intermodal Operating Ratio roughly breakeven for the full year with volumes up year-over-year
  • Non-reportable to have modest revenue growth for the year and operating income in the second half roughly in line on a year-over-year basis as insurance losses are expected to moderate

Headwinds

  • Truckload rates continue to be pressured, with a year-over-year decrease in overall revenue per mile of high single to low double digit percent for the full year
  • U.S. Xpress projected loss of $0.25 to $0.30 post acquisition, inclusive of incremental interest expense associated with the acquisition.
  • Expect approximately $20 million increase in interest expense in the second half of 2023 as compared to the first half, reflecting approximately $800 million additional debt from U.S. Xpress acquisition and assuming Fed hiking cycle is nearly complete
  • Net cash capital expenditures for the full year 2023 expected range of $700 million - $750 million, which has been updated from $640 million to $690 million to include anticipated expenditures for U.S. Xpress.
  • Expected tax rate of 25% to 26% for the full year 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

-0.4%

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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro