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Knight-Swift (KNX) Stock Up 3.7% on Q2 Earnings Beat
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Knight-Swift Transportation Holdings (KNX - Free Report) stock has gained 3.7% since its second-quarter 2022 earnings release on Jul 20. The uptick can be attributed to better-than-expected earnings and revenue performance.
Quarterly earnings (excluding 6 cents from non-recurring items) of $1.41 per share surpassed the Zacks Consensus Estimate of $1.35. The bottom line surged 43.9% from the second quarter of 2021 figure, aided by higher revenues.
Total revenues of $1,961.1 million outperformed the Zacks Consensus Estimate of $1,790 million. The top line jumped 49.1% year over year.
Total operating expenses (on a reported basis) surged 45.4% year over year to $1.64 billion. Knight-Swift’s adjusted operating income rose 66.1% 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 $981.48 million, up 11.2% year over year. Results were driven by an 11.1% increase in average revenue per tractor. Adjusted segmental operating income rose 22.4% to $206.6 million. Adjusted operating ratio (operating expenses as a percentage of revenues) declined 200 basis points to 78.9%.
Revenues in the Logistics segment (excluding inter-segment transactions) amounted to $247.32 million, up 52.5% year over year, owing to the 48.2% increase in load count and a 2.9% rise in revenue per load. Segmental adjusted operating income surged more than 200% to $44.1 million. Adjusted operating ratio fell to 82.2% in the second quarter from 91.1% in the year-ago period.
Revenues in the Intermodal segment (excluding inter-segment transactions) totaled $132.85 million, up 15.2% year over year. Segmental operating ratio (on a reported basis) fell to 89.3% in the reported quarter from 95% 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 $224.18 million in the June quarter. The segment also includes the results of Midwest Motor Express, acquired last December. Segmental operating ratio (on an adjusted basis) was 78.7%.
Liquidity, Dividends & Buyback
Knight-Swift exited the second quarter with cash and cash equivalents of $198.02 million compared with $242.86 million at the end of March 2022. Additionally, long-term debt (excluding current maturities) of $1.03 billion was flat sequentially.
During the reported quarter, KNX returned $150 million to its shareholders in the form of share repurchases and $19.6 million as dividends.
2022 Guidance
For the ongoing year, Knight-Swift now expects adjusted earnings per share in the range of $5.30-$5.45 (previous guidance: $5.20-$5.40). The Zacks Consensus Estimate of $5.33 billion lies within the updated guidance.
KNX continues to expect net cash capital expenditures for 2022 in the band of $550-$600 million. The tax rate is expected to be 25% for 2022.
Delta AirLines’ (DAL - Free Report) second-quarter 2022 earnings (excluding 29 cents from non-recurring items) of $1.44 per share fell short of the Zacks Consensus Estimate of $1.71. Escalated operating expenses induced the earnings miss. Multiple flight cancellations in May and June also hurt results. The earnings miss disappointed investors, resulting in the stock shedding value in early trading. In the year-ago quarter, Delta incurred a loss of $1.07 per share when air-travel demand was not as buoyant as in the current scenario.
DAL’s revenues came in at $13,824 million, which not only beat the Zacks Consensus Estimate of $13,608.9 million but also soared 94% from the year-ago quarter’s figure as air-travel demand rebounded from the pandemic lows. The uptick in air-travel demand in the United States can be gauged from the fact that 75.9% of second-quarter 2022 passenger revenues came from the domestic markets.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.
JBHT’s quarterly earnings of $2.42 per share surpassed the Zacks Consensus Estimate of $1.61 and improved 50.3% year over year.
JBHT’s total operating revenues of $3,837.53 million also outperformed the Zacks Consensus Estimate of $2,908.37 million. The top line jumped 32% year over year on the back of strength across all segments. JBHT’s total operating revenues, excluding fuel surcharges, rose 21.2% year over year.
CSX Corporation (CSX - Free Report) ) reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.
CSX’s quarterly earnings of 50 cents per share (excluding 4 cents from non-recurring items) beat the Zacks Consensus Estimate of 47 cents and improved 25% year over year.
CSX’s total revenues of $3,815 million outperformed the Zacks Consensus Estimate of $2,990 million. The top line increased 28% year over year on the back of higher revenues in almost all markets, driven by pricing gains, fuel surcharge and contribution from the acquisition of Quality Carriers. CSX’s overall revenues per unit increased 27%.
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Knight-Swift (KNX) Stock Up 3.7% on Q2 Earnings Beat
Knight-Swift Transportation Holdings (KNX - Free Report) stock has gained 3.7% since its second-quarter 2022 earnings release on Jul 20. The uptick can be attributed to better-than-expected earnings and revenue performance.
Quarterly earnings (excluding 6 cents from non-recurring items) of $1.41 per share surpassed the Zacks Consensus Estimate of $1.35. The bottom line surged 43.9% from the second quarter of 2021 figure, aided by higher revenues.
Total revenues of $1,961.1 million outperformed the Zacks Consensus Estimate of $1,790 million. The top line jumped 49.1% year over year.
Total operating expenses (on a reported basis) surged 45.4% year over year to $1.64 billion. Knight-Swift’s adjusted operating income rose 66.1% 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 $981.48 million, up 11.2% year over year. Results were driven by an 11.1% increase in average revenue per tractor. Adjusted segmental operating income rose 22.4% to $206.6 million. Adjusted operating ratio (operating expenses as a percentage of revenues) declined 200 basis points to 78.9%.
Revenues in the Logistics segment (excluding inter-segment transactions) amounted to $247.32 million, up 52.5% year over year, owing to the 48.2% increase in load count and a 2.9% rise in revenue per load. Segmental adjusted operating income surged more than 200% to $44.1 million. Adjusted operating ratio fell to 82.2% in the second quarter from 91.1% in the year-ago period.
Revenues in the Intermodal segment (excluding inter-segment transactions) totaled $132.85 million, up 15.2% year over year. Segmental operating ratio (on a reported basis) fell to 89.3% in the reported quarter from 95% 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 $224.18 million in the June quarter. The segment also includes the results of Midwest Motor Express, acquired last December. Segmental operating ratio (on an adjusted basis) was 78.7%.
Liquidity, Dividends & Buyback
Knight-Swift exited the second quarter with cash and cash equivalents of $198.02 million compared with $242.86 million at the end of March 2022. Additionally, long-term debt (excluding current maturities) of $1.03 billion was flat sequentially.
During the reported quarter, KNX returned $150 million to its shareholders in the form of share repurchases and $19.6 million as dividends.
2022 Guidance
For the ongoing year, Knight-Swift now expects adjusted earnings per share in the range of $5.30-$5.45 (previous guidance: $5.20-$5.40). The Zacks Consensus Estimate of $5.33 billion lies within the updated guidance.
KNX continues to expect net cash capital expenditures for 2022 in the band of $550-$600 million. The tax rate is expected to be 25% for 2022.
Currently, Knight-Swift carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Transportation Companies
Delta AirLines’ (DAL - Free Report) second-quarter 2022 earnings (excluding 29 cents from non-recurring items) of $1.44 per share fell short of the Zacks Consensus Estimate of $1.71. Escalated operating expenses induced the earnings miss. Multiple flight cancellations in May and June also hurt results. The earnings miss disappointed investors, resulting in the stock shedding value in early trading. In the year-ago quarter, Delta incurred a loss of $1.07 per share when air-travel demand was not as buoyant as in the current scenario.
DAL’s revenues came in at $13,824 million, which not only beat the Zacks Consensus Estimate of $13,608.9 million but also soared 94% from the year-ago quarter’s figure as air-travel demand rebounded from the pandemic lows. The uptick in air-travel demand in the United States can be gauged from the fact that 75.9% of second-quarter 2022 passenger revenues came from the domestic markets.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.
JBHT’s quarterly earnings of $2.42 per share surpassed the Zacks Consensus Estimate of $1.61 and improved 50.3% year over year.
JBHT’s total operating revenues of $3,837.53 million also outperformed the Zacks Consensus Estimate of $2,908.37 million. The top line jumped 32% year over year on the back of strength across all segments. JBHT’s total operating revenues, excluding fuel surcharges, rose 21.2% year over year.
CSX Corporation (CSX - Free Report) ) reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.
CSX’s quarterly earnings of 50 cents per share (excluding 4 cents from non-recurring items) beat the Zacks Consensus Estimate of 47 cents and improved 25% year over year.
CSX’s total revenues of $3,815 million outperformed the Zacks Consensus Estimate of $2,990 million. The top line increased 28% year over year on the back of higher revenues in almost all markets, driven by pricing gains, fuel surcharge and contribution from the acquisition of Quality Carriers. CSX’s overall revenues per unit increased 27%.