NYSE$KNX

Knight-Swift Transportation Holdings Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Knight-Swift reported strong operating results across all segments despite a shifting freight environment. Revenue increased, but operating income and net income decreased compared to the same quarter last year.

Knight-Swift Transportation Holdings Inc. reported a decrease in net income attributable to Knight-Swift to $194.8 million and an adjusted EPS of $1.27 for Q3 2022. Consolidated total revenue grew by 15.5%, while consolidated operating income decreased by 1.7% to $265.4 million. The company is focused on synergy opportunities and system integrations, especially within the LTL segment.

  • Consolidated total revenue increased by 15.5%, while operating income decreased by 1.7%.
  • Truckload segment operated with an 81.8% Adjusted Operating Ratio.
  • LTL segment improved Adjusted Operating Ratio by 300 basis points year-over-year to 84.5%.
  • Logistics segment saw a 20.1% load count growth.

Headline financials

Total Revenue

$1.9B

Previous: $1.64B+15.5%
EPS (adj)

$1.27

Previous: $1.30-2.3%
Miles per Tractor

19.4K

Previous: 20.2K-4.2%
LTL Shipments per Day

18.8K

No prior period
LTL Weight per Shipment

1.1K

No prior period
LTL Revenue per Shipment

$151.07

No prior period
LTL Revenue per CWT

$14.37

Previous: $12.44+15.5%
Logistics Revenue per Load

$1.99K

Previous: $2.51K-21.0%
Intermodal Load Count

35.4K

Previous: 38.9K-9.0%
Capital Expenditures

-$496M

Previous: -$389M-27.7%
Free Cash Flow

-$301M

Previous: -$182M-65.3%
Net Income

$195M

Previous: $206M-5.5%
Operating Income

$265M

Previous: $270M-1.7%
Gross Profit

$1.41B

Previous: $1.31B+7.6%
Cash & Equivalents

$194M

Previous: $270M-28.0%
Total Assets

$10.7B

Previous: $10.4B+3.8%

Revenue & EPS history

Knight-Swift · Revenue · Quarterly

$1.9B

Q3 2022+15.5%vs Q3 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Knight-Swift · $1.78B total across 4 segments · Q3 2022

  • Truckload
    $1.16B+11.5%
  • LTL
    $279M+45.2%
  • Logistics
    $211M-6.9%
  • Intermodal
    $131M+15.9%

Forward guidance

Knight-Swift expects Adjusted EPS for full-year 2022 to range from $5.17 to $5.22.

Tailwinds

  • Year-over-year increase in LTL revenue and margin, but typical sequential declines
  • Intermodal margins to remain in the high single digits with volumes improving year-over-year
  • Continued growth in revenue and operating income in non-reportable
  • Approximate tax rate of 25% for the full year 2022
  • Net Cash Capex for the full year 2022 expected range of $525M – $575M

Headwinds

  • Rates inflect negatively year-over-year as the moderating spot market yields less non-contract opportunities
  • Stable truck count with typical sequential declines in miles per tractor
  • Stable Logistics load volumes with reduced revenue per load and an operating ratio in the mid-to-high 80's
  • Inflationary pressure in most cost areas including driver pay, maintenance, equipment, and non-driving labor
  • Sequential increase in interest expense due to higher rates

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 2022

Historical avgQ3 2022

-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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