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Knight-Swift Transportation Holdings Inc.’s (KNX - Free Report) fourth-quarter 2021 earnings (excluding 9 cents from non-recurring items) of $1.61 per share surpassed the Zacks Consensus Estimate of $1.43. The bottom line surged 71.3% from the fourth-quarter 2020 figure, aided by higher revenues.
Total revenues of $1,816.9 million outperformed the Zacks Consensus Estimate of $1,720.5 million. The top line jumped 42.2% year over year, driven mainly by a massive increase in revenues at the Logistics segment.
Total operating expenses (on a reported basis) surged 36.1% year over year to $1.47 billion. This increase was mainly due to 50.5% escalation in fuel expenses as oil price moves north. Salaries, wages and benefits expenses climbed 35.5% year over year. Knight-Swift’s adjusted operating income rose 66% year over year.
KnightSwift Transportation Holdings Inc. Price, Consensus and EPS Surprise
Revenues (excluding fuel surcharge and inter-segment transactions) in the Truckload segment totaled $992.69 million, up 5.5% year over year. Results were driven by an 8.5% increase in average revenue per tractor. Average revenue per tractor was strong in the quarter, owing to a 25.4% increase in revenue per loaded mile (excluding fuel surcharge and intersegment transactions). Adjusted segmental operating income rose 28.9% to $251.32 million. Adjusted operating ratio (operating expenses as a percentage of revenues) improved 460 basis points to 74.7%.
Revenues in the Logistics segment (excluding inter-segment transactions) amounted to $299.43 million, up more than 100% year over year owing to the 84% increase in load count and a 30.2% rise in revenue per load. Adjusted operating ratio improved to 84.9% in the fourth quarter from 91.2% in the year-ago period. Segmental adjusted operating income surged more than 300% to $45.19 million.
Revenues in the Intermodal segment (excluding inter-segment transactions) totaled $123.56 million, up 7.5% year over year. Persistent rail congestion and rail allocations induced a decline in load count but contributed to a 39.2% rise in revenue per load. Segmental operating ratio (on a reported basis) improved to 81.2% in the reported quarter from 94.8% in the year-ago quarter.
The Less-Than-Truckload (LTL) segment, which includes the results of AAA Cooper Transportation, a leading LTL carrier acquired by Knight-Swift in July 2021, generated revenues (excluding fuel surcharges) worth $177.9 million in the December quarter. The segment also includes the results of Midwest Motor Express, which was acquired in December 2021. Segmental operating ratio (on an adjusted basis) was 90.3%.
Other Details
Knight-Swift, carrying a Zacks Rank #3 (Hold), exited the fourth quarter with cash and cash equivalents of $261 million compared with $156.70 million at the end of 2020. During 2021, the company returned $57.2 million to its shareholders in the form of share repurchases and $63.5 million as dividends. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2022 Guidance
For 2022, Knight-Swift expects adjusted earnings per share to be in the range of $5.10-$5.30. The Zacks Consensus Estimate for the same stands at $5.03.
The company expects double-digit truckload contract rate increases in 2022. Intermodal volumes are anticipated to decline in the first half of the year, while it is predicted to increase in the latter half. Logistics revenues are forecast to grow more than 20% in the year. The company expects year-over-year rise in LTL revenues and margins. Net cash capital expenditures for 2022 are estimated in the band of $550-$600 million.
CSX, carrying a Zacks Rank #3, reported fourth-quarter 2021 earnings of 42 cents per share, which surpassed the Zacks Consensus Estimate by a penny. The bottom line improved in double digits year over year owing to higher revenues.
CSX’s total revenues of $3,427 million outperformed the Zacks Consensus Estimate of $3296 million. The top line jumped 21.3% year over year owing to growth across all its businesses, and revenues from Quality Carriers, which the company acquired in July 2021.
Canadian National, carrying a Zacks Rank #3, reported fourth-quarter 2021 earnings (excluding 2 cents from non-recurring items) of $1.36 per share (C$1.71), which surpassed the Zacks Consensus Estimate of $1.21. The bottom line increased in double digits year over year due to lower costs.
Canadian National’s quarterly revenues of $2,977.4 million (C$3,753 million) topped the Zacks Consensus Estimate of $2,917.4 million. The top line improved year over year, driven by higher freight rates and fuel surcharges.
GATX, carrying a Zacks Rank #2 (Buy), reported fourth-quarter 2021 earnings (excluding 11 cents from non-recurring items) of $1.58 per share, which surpassed the Zacks Consensus Estimate of $1.07. The bottom line surged more than 200% year over year.
GATX’s total revenues of $321 million increased 5.3% year over year, mainly due to 5.2% rise in lease revenues, which came in at $288.4 million. Lease revenues contributed 89.8% to the top line.
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Knight-Swift's (KNX) Q4 Earnings Beat, Increase 71% Y/Y
Knight-Swift Transportation Holdings Inc.’s (KNX - Free Report) fourth-quarter 2021 earnings (excluding 9 cents from non-recurring items) of $1.61 per share surpassed the Zacks Consensus Estimate of $1.43. The bottom line surged 71.3% from the fourth-quarter 2020 figure, aided by higher revenues.
Total revenues of $1,816.9 million outperformed the Zacks Consensus Estimate of $1,720.5 million. The top line jumped 42.2% year over year, driven mainly by a massive increase in revenues at the Logistics segment.
Total operating expenses (on a reported basis) surged 36.1% year over year to $1.47 billion. This increase was mainly due to 50.5% escalation in fuel expenses as oil price moves north. Salaries, wages and benefits expenses climbed 35.5% year over year. Knight-Swift’s adjusted operating income rose 66% year over year.
KnightSwift Transportation Holdings Inc. Price, Consensus and EPS Surprise
KnightSwift Transportation Holdings Inc. price-consensus-eps-surprise-chart | KnightSwift Transportation Holdings Inc. Quote
Segmental Results
Revenues (excluding fuel surcharge and inter-segment transactions) in the Truckload segment totaled $992.69 million, up 5.5% year over year. Results were driven by an 8.5% increase in average revenue per tractor. Average revenue per tractor was strong in the quarter, owing to a 25.4% increase in revenue per loaded mile (excluding fuel surcharge and intersegment transactions). Adjusted segmental operating income rose 28.9% to $251.32 million. Adjusted operating ratio (operating expenses as a percentage of revenues) improved 460 basis points to 74.7%.
Revenues in the Logistics segment (excluding inter-segment transactions) amounted to $299.43 million, up more than 100% year over year owing to the 84% increase in load count and a 30.2% rise in revenue per load. Adjusted operating ratio improved to 84.9% in the fourth quarter from 91.2% in the year-ago period. Segmental adjusted operating income surged more than 300% to $45.19 million.
Revenues in the Intermodal segment (excluding inter-segment transactions) totaled $123.56 million, up 7.5% year over year. Persistent rail congestion and rail allocations induced a decline in load count but contributed to a 39.2% rise in revenue per load. Segmental operating ratio (on a reported basis) improved to 81.2% in the reported quarter from 94.8% in the year-ago quarter.
The Less-Than-Truckload (LTL) segment, which includes the results of AAA Cooper Transportation, a leading LTL carrier acquired by Knight-Swift in July 2021, generated revenues (excluding fuel surcharges) worth $177.9 million in the December quarter. The segment also includes the results of Midwest Motor Express, which was acquired in December 2021. Segmental operating ratio (on an adjusted basis) was 90.3%.
Other Details
Knight-Swift, carrying a Zacks Rank #3 (Hold), exited the fourth quarter with cash and cash equivalents of $261 million compared with $156.70 million at the end of 2020. During 2021, the company returned $57.2 million to its shareholders in the form of share repurchases and $63.5 million as dividends. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2022 Guidance
For 2022, Knight-Swift expects adjusted earnings per share to be in the range of $5.10-$5.30. The Zacks Consensus Estimate for the same stands at $5.03.
The company expects double-digit truckload contract rate increases in 2022. Intermodal volumes are anticipated to decline in the first half of the year, while it is predicted to increase in the latter half. Logistics revenues are forecast to grow more than 20% in the year. The company expects year-over-year rise in LTL revenues and margins. Net cash capital expenditures for 2022 are estimated in the band of $550-$600 million.
Sectorial Snapshots
Within the broader Transportation sector, CSX Corporation (CSX - Free Report) , Canadian National Railway (CNI - Free Report) and GATX Corporation (GATX - Free Report) recently reported fourth-quarter 2021 results.
CSX, carrying a Zacks Rank #3, reported fourth-quarter 2021 earnings of 42 cents per share, which surpassed the Zacks Consensus Estimate by a penny. The bottom line improved in double digits year over year owing to higher revenues.
CSX’s total revenues of $3,427 million outperformed the Zacks Consensus Estimate of $3296 million. The top line jumped 21.3% year over year owing to growth across all its businesses, and revenues from Quality Carriers, which the company acquired in July 2021.
Canadian National, carrying a Zacks Rank #3, reported fourth-quarter 2021 earnings (excluding 2 cents from non-recurring items) of $1.36 per share (C$1.71), which surpassed the Zacks Consensus Estimate of $1.21. The bottom line increased in double digits year over year due to lower costs.
Canadian National’s quarterly revenues of $2,977.4 million (C$3,753 million) topped the Zacks Consensus Estimate of $2,917.4 million. The top line improved year over year, driven by higher freight rates and fuel surcharges.
GATX, carrying a Zacks Rank #2 (Buy), reported fourth-quarter 2021 earnings (excluding 11 cents from non-recurring items) of $1.58 per share, which surpassed the Zacks Consensus Estimate of $1.07. The bottom line surged more than 200% year over year.
GATX’s total revenues of $321 million increased 5.3% year over year, mainly due to 5.2% rise in lease revenues, which came in at $288.4 million. Lease revenues contributed 89.8% to the top line.