NYSE$KNX

Knight-Swift Transportation Holdings Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Knight-Swift reported mixed results for Q3 2023, with revenue increase driven by acquisition but earnings significantly down year-over-year.

Knight-Swift's Q3 2023 results showed a revenue increase of 6.5% to $2.0 billion, but net income attributable to Knight-Swift decreased by 69.1% to $60.2 million. The Adjusted EPS was $0.41, compared to $1.27 for the third quarter of 2022. The truckload segment saw revenue growth due to the U.S. Xpress acquisition, while the LTL segment showed revenue and operating income improvements. The logistics segment experienced a decline in load count, and the intermodal segment had a negative operating ratio.

  • Consolidated total revenue increased by 6.5% year-over-year to $2.0 billion, while operating income decreased by 69.5% to $81.1 million.
  • Truckload revenue increased by 21.9% year-over-year, excluding fuel surcharge and intersegment transactions, driven by the acquisition of U.S. Xpress, but this also negatively impacted the Adjusted Operating Ratio by 340 basis points.
  • LTL segment revenue, excluding fuel surcharge and intersegment transactions, increased by 6.9% year-over-year, with an Adjusted Operating Ratio of 84.9%.
  • Logistics segment Adjusted Operating Ratio was 93.3%, with load count decreasing 10.3% year-over-year excluding the U.S. Xpress logistics business, there was a 29.7% decline in load count.

Headline financials

Total Revenue

$2.02B

Previous: $1.9B+6.5%
EPS (adj)

$0.41

Previous: $1.27-67.7%
Miles per Tractor

20.4K

Previous: 19.4K+5.1%
LTL Shipments per Day

19.7K

Previous: 18.8K+4.8%
LTL Weight per Shipment

1.0K

Previous: 1.1K-1.0%
LTL Revenue per Shipment

$196.59

Previous: $151.07+30.1%
LTL Revenue per CWT

$18.86

Previous: $14.37+31.2%
Logistics Revenue per Load

$1.67K

Previous: $1.99K-15.8%
Intermodal Load Count

37.3K

Previous: 35.4K+5.5%
Capital Expenditures

-$853M

Previous: -$496M-71.8%
Free Cash Flow

-$792M

Previous: -$301M-162.9%
Net Income

$60.2M

Previous: $195M-69.1%
Operating Income

$81.1M

Previous: $265M-69.5%
Gross Profit

$1.43B

Previous: $1.41B+1.3%
Cash & Equivalents

$193M

Previous: $194M-0.4%
Total Assets

$12.8B

Previous: $10.7B+19.5%

Revenue & EPS history

Knight-Swift · Revenue · Quarterly

$2.02B

Q3 2023+6.5%vs Q3 2022
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 expects full-year 2023 Adjusted EPS to range from $2.10 to $2.20, based on current market conditions and management's expectations.

Tailwinds

  • Truckload rates stabilize at current levels for the fourth quarter.
  • Truckload tractor count down modestly sequentially.
  • Excluding the results of U.S. Xpress, miles per tractor increase low single digits year-over-year in the fourth quarter.
  • LTL revenue, excluding fuel surcharge increases mid-teens year-over-year in the fourth quarter with a similar margin profile.
  • LTL shipment count and revenue per hundredweight, excluding fuel surcharge improve high single digit percent year-over-year in the fourth quarter.

Headwinds

  • U.S. Xpress Adjusted EPS dilutive impact in the fourth quarter expected to be approximately ($0.05) as performance continues to improve.
  • Logistics volume and revenue per load stabilize in the fourth quarter, with an operating ratio in the low 90s.
  • Intermodal Operating Ratio slightly profitable with volumes stable sequentially.
  • Non-reportable operating income to decline roughly $10 million - $15 million sequentially as third-party insurance losses are expected to be $10 million - $15 million and our other businesses experience their typical seasonal slowdown.
  • Expected tax rate of approximately 26% for the fourth quarter of 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 Q3 2023

Historical avgQ3 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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