Knight-Swift Transportation beat third-quarter expectations Wednesday after the market closed.
Knight-Swift (NYSE: KNX) reported third-quarter adjusted earnings per share of 83 cents, 51 cents higher than the year-ago quarter and 7 cents better than the consensus estimate. (Management’s EPS guidance range was 71 to 77 cents.)
Revenue of $2.2 billion was up 14% y/y (up 8% y/y excluding fuel surcharges) and slightly ahead of analysts’ expectations for $2.17 billion.
“Similar to our outlook last quarter, we expect momentum across our businesses to keep building as rates continue to be reset, as we maintain our cost and operational initiatives, and as we anticipate more seasonal spot and project opportunities than we have seen in recent years,” said Knight-Swift CEO Adam Miller in a news release.
The truckload unit saw a 6.5% y/y revenue increase (ex-fuel) as an 11% increase in revenue per tractor was only partially offset by a 4% decline in average tractors in service. Loaded miles per tractor were up 1% y/y, an eighth consecutive increase. Deadhead was down 170 basis points y/y to 12.1%. Revenue per loaded mile (ex-fuel) increased 10% y/y. The metric was up by a mid-teen percentage in its over-the-road service.
The TL unit posted an 89.2% adjusted operating ratio, 700 bps better y/y and in line with the midpoint of management’s guidance range. U.S. Xpress, which was acquired in 2023, operated at a low-90% adjusted OR in the quarter while Knight-Swift’s legacy brands operated at 88%.
Less-than-truckload revenue was up less than 1% y/y (ex-fuel). Tonnage increased 3% while revenue per hundredweight (ex-fuel) dipped 1%. Increases in weight per shipment (+5%) and length of haul (+6%) had mostly offsetting impacts on yield in the quarter. Revenue per shipment (ex-fuel) increased 4%. Contractual renewals were up by a mid-single-digit percentage.
The LTL unit booked a 91.4% adjusted OR, 80 bps worse y/y.
Knight-Swift issued fourth-quarter adjusted EPS guidance of 78 to 84 cents, which bracketed the 82-cent consensus estimate at the time of the print.
The third-quarter adjusted EPS number benefitted from a lower tax rate and a $22 million reduction in net interest expense (10 cents per share). However, the other income line was down $3.5 million y/y (2 cents per share).
Shares of KNX were up 4.4% in after-hours trading on Wednesday.
The company will host a call at 5:30 p.m. EDT on Wednesday to discuss third-quarter results.
Why it matters? Knight-Swift is the nation’s largest asset-based TL carrier and serves as a bellwether for market trends. The company’s third-quarter results highlight that the market has transitioned from a cyclical downturn to a structural recovery.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now