NYSE$KNX

Knight-Swift Transportation Holdings Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Knight-Swift's Q2 2024 performance was impacted by a challenging truckload market, offset by strong LTL growth and strategic cost management.

Knight-Swift Transportation Holdings reported a mixed Q2 2024, with consolidated total revenue increasing by 18.9% to $1.8 billion, driven by the U.S. Xpress acquisition. However, net income attributable to Knight-Swift decreased to $20.3 million, and operating income fell by 32.5% to $63.5 million. Adjusted EPS was $0.24, including a $0.06 negative impact from a $12.5 million charge for an auto liability claim settlement.

  • Consolidated total revenue increased by 18.9% year-over-year to $1.8 billion, primarily due to the acquisition of U.S. Xpress.
  • GAAP earnings per diluted share were $0.13, while Adjusted EPS was $0.24, which includes a $0.06 negative impact from an auto liability claim settlement.
  • The LTL segment saw a 15.1% increase in revenues, excluding fuel surcharge, and an Adjusted Operating Ratio of 85.9%.
  • The company opened 11 new LTL locations during the quarter and plans to open 20 more by the end of the year.

Headline financials

Total Revenue

$1.85B

Previous: $1.55B+18.9%
EPS

$0.13

Previous: $0.49-73.5%
Miles per Tractor

20.5K

Previous: 18.9K+8.5%
LTL Shipments per Day

20.5K

Previous: 18.9K+8.4%
LTL Weight per Shipment

1.0K

Previous: 1.1K-4.7%
LTL Revenue per Shipment

$202.46

Previous: $160.66+26.0%
LTL Revenue per CWT

$20.09

Previous: $17.77+13.1%
Logistics Revenue per Load

$1.83K

Previous: $1.65K+10.8%
Intermodal Load Count

37.3K

Previous: 37.9K-1.7%
Capital Expenditures

-$373M

Previous: -$518M+28.0%
Free Cash Flow

-$352M

Previous: -$455M+22.5%
Net Income

$20.3M

Previous: $63.3M-67.9%
Operating Income

$63.5M

Previous: $94M-32.5%
Gross Profit

$1.35B

Previous: $1.12B+20.8%
Cash & Equivalents

$186M

Previous: $229M-18.6%
Total Assets

$12.6B

Previous: $11.4B+9.9%

Revenue & EPS history

Knight-Swift · Revenue · Quarterly

$1.85B

Q2 2024+18.9%vs Q2 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Knight-Swift · $1.68B total across 4 segments · Q3 2023

  • Truckload
    $1.18B+1.7%
  • LTL
    $240M-13.9%
  • Logistics
    $159M-24.7%
  • Intermodal
    $101M-22.6%

Forward guidance

Knight-Swift anticipates Adjusted EPS to range from $0.31 to $0.35 for Q3 2024 and $0.32 to $0.36 for Q4 2024, based on current market conditions and expected seasonality without factoring in a market inflection.

Tailwinds

  • Truckload segment revenue is expected to increase slightly sequentially in both Q3 and Q4.
  • Truckload operating margins are projected to improve sequentially each quarter, leading to adjusted operating ratios in the low to mid-90s.
  • LTL revenue, excluding fuel surcharge, is anticipated to grow by a low double-digit percentage year-over-year.
  • LTL shipment count is expected to improve by a mid-single-digit percentage year-over-year in both Q3 and Q4.
  • Logistics load count is projected to grow sequentially by a mid-single-digit percentage in Q3 and stabilize in Q4.

Headwinds

  • Truckload tractor count is expected to decrease modestly sequentially into Q3 before stabilizing in Q4.
  • All Other segments operating income, excluding intangible asset amortization, is projected to be approximately $10-15 million for Q3 but modestly negative for Q4 due to seasonal slowdown.
  • Net interest expense is expected to increase modestly sequentially in both Q3 and Q4.
  • Intermodal operating ratio modestly below breakeven by the fourth quarter.
  • The timing of an inflection in market conditions has proven especially difficult to predict during this cycle

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 2024

Historical avgQ2 2024

-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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