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Knight-Swift (KNX) Down 6.2% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Knight-Swift Transportation Holdings (KNX - Free Report) . Shares have lost about 6.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Knight-Swift due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Knight-Swift Transportation Holdings Inc. before we dive into how investors and analysts have reacted as of late.
Knight-Swift Transportation Holdings Inc.’s second-quarter 2025 adjusted earnings of 35 cents per share beat the Zacks Consensus Estimate by a penny and improved 45.8% year over year. The reported figure came within the guidedrange of 30-38 cents.
Total revenues of $1.86 million missed the Zacks Consensus Estimate marginally by 0.4% and improved 0.8% year over year. Revenues, excluding truckload and LTL fuel surcharge, grew 1.9% year over year to $1.67 billion.
Total operating expenses (on a reported basis) decreased 0.3% year over year to $1.78 billion.
KNX’s Q2 Segmental Results
Revenues (excluding fuel surcharge and inter-segment transactions) from Truckload totaled $1.07 billion, down 2.7% year over year. This was due to a 2.8% decrease in loaded miles.
Adjusted segmental operating income grew 87.5% year over year to $58.40 million. Adjusted operating ratio (operating expenses as a percentage of revenues) fell 260 basis points (bps) to 94.6%.
The Less-Than-Truckload segment generated revenues (excluding fuel surcharges) worth $337.72 million in the second quarter, up 28.4% year over year as shipments per day increased 21.7% year over year, which includes the acquisition of DHE on July 30, 2024. Revenue per hundredweight, excluding fuel surcharge, increased 9.9% year over year, while revenue per shipment, excluding fuel surcharge, increased 7.1% year over year.
Adjusted segmental operating income was down 36.8% year over year to $23.35 million. Adjusted operating ratio rose 720 bps to 93.1% year over year.
Revenues from Logistics (excluding inter-segment transactions) amounted to $128.29 million, down 2.6% year over year. The downside was owing to an 11.7% decline in load count, largely offset by a 10.6% increase in revenue per load. Adjusted operating income increased 13.3% year over year to $6.71 million. The adjusted operating ratio fell 70 bps to 94.8%.
Intermodal revenues (excluding inter-segment transactions) totaled $84.06 million, down 13.8% year over year. The revenue decrease was owing to a 12.4% decrease in load count and a 1.6% decline in revenue per load year over year. Segment operating ratio increased 230 basis points to 104.1%, owing to a 13.8% decline in revenues, partially offset by reductions in cost and improvements in network balance.
Revenues within All Other Segments for the second quarter increased 9% year over year to $74.44 million, owing to the KNX’s warehousing and leasing businesses.
Liquidity
Knight-Swift exited the second quarter with cash and cash equivalents of $216.32 million compared with $209.48 million at the prior-quarter end. Long-term debt (excluding current maturities) was $1.39 billion compared with $1.41 billion at the end of the prior quarter.
KNX's Guidance
KNX expects its third-quarter 2025 adjusted earnings per share guidance to be in the range of 36-42 cents. The Zacks Consensus Estimate of 40 cents lies within the guidance.
Truckload segment revenues are expected to be up in the low single-digit percent sequentially, with operating margins slightly improved sequentially. LTL Segment revenues, excluding fuel surcharge, are expected to grow between 20% and 25% year over year in the third quarter.
Logistics segment revenues and adjusted operating ratio are expected to be fairly stable sequentially. Intermodal segment operating loss is expected to improve sequentially, driven by cost initiatives and volume leverage.
All Other segment operating income, before including the $11.7 million quarterly intangible asset amortization, is expected to lie between $15 million and $20 million in the third quarter, with a fourth quarter sequential step-down similar to prior-year trends.
Net interest expense is expected to be fairly stable sequentially in the third quarter. Net cash capital expenditures for 2025 are expected to be in the range of $525 million-$575 million. Effective tax rate (on adjusted income before taxes) is expected to be 27-28% for the third quarter.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Knight-Swift has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Knight-Swift has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Knight-Swift (KNX) Down 6.2% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Knight-Swift Transportation Holdings (KNX - Free Report) . Shares have lost about 6.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Knight-Swift due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Knight-Swift Transportation Holdings Inc. before we dive into how investors and analysts have reacted as of late.
Knight-Swift Transportation Holdings Inc.’s second-quarter 2025 adjusted earnings of 35 cents per share beat the Zacks Consensus Estimate by a penny and improved 45.8% year over year. The reported figure came within the guidedrange of 30-38 cents.
Total revenues of $1.86 million missed the Zacks Consensus Estimate marginally by 0.4% and improved 0.8% year over year. Revenues, excluding truckload and LTL fuel surcharge, grew 1.9% year over year to $1.67 billion.
Total operating expenses (on a reported basis) decreased 0.3% year over year to $1.78 billion.
KNX’s Q2 Segmental Results
Revenues (excluding fuel surcharge and inter-segment transactions) from Truckload totaled $1.07 billion, down 2.7% year over year. This was due to a 2.8% decrease in loaded miles.
Adjusted segmental operating income grew 87.5% year over year to $58.40 million. Adjusted operating ratio (operating expenses as a percentage of revenues) fell 260 basis points (bps) to 94.6%.
The Less-Than-Truckload segment generated revenues (excluding fuel surcharges) worth $337.72 million in the second quarter, up 28.4% year over year as shipments per day increased 21.7% year over year, which includes the acquisition of DHE on July 30, 2024. Revenue per hundredweight, excluding fuel surcharge, increased 9.9% year over year, while revenue per shipment, excluding fuel surcharge, increased 7.1% year over year.
Adjusted segmental operating income was down 36.8% year over year to $23.35 million. Adjusted operating ratio rose 720 bps to 93.1% year over year.
Revenues from Logistics (excluding inter-segment transactions) amounted to $128.29 million, down 2.6% year over year. The downside was owing to an 11.7% decline in load count, largely offset by a 10.6% increase in revenue per load. Adjusted operating income increased 13.3% year over year to $6.71 million. The adjusted operating ratio fell 70 bps to 94.8%.
Intermodal revenues (excluding inter-segment transactions) totaled $84.06 million, down 13.8% year over year. The revenue decrease was owing to a 12.4% decrease in load count and a 1.6% decline in revenue per load year over year. Segment operating ratio increased 230 basis points to 104.1%, owing to a 13.8% decline in revenues, partially offset by reductions in cost and improvements in network balance.
Revenues within All Other Segments for the second quarter increased 9% year over year to $74.44 million, owing to the KNX’s warehousing and leasing businesses.
Liquidity
Knight-Swift exited the second quarter with cash and cash equivalents of $216.32 million compared with $209.48 million at the prior-quarter end. Long-term debt (excluding current maturities) was $1.39 billion compared with $1.41 billion at the end of the prior quarter.
KNX's Guidance
KNX expects its third-quarter 2025 adjusted earnings per share guidance to be in the range of 36-42 cents. The Zacks Consensus Estimate of 40 cents lies within the guidance.
Truckload segment revenues are expected to be up in the low single-digit percent sequentially, with operating margins slightly improved sequentially. LTL Segment revenues, excluding fuel surcharge, are expected to grow between 20% and 25% year over year in the third quarter.
Logistics segment revenues and adjusted operating ratio are expected to be fairly stable sequentially. Intermodal segment operating loss is expected to improve sequentially, driven by cost initiatives and volume leverage.
All Other segment operating income, before including the $11.7 million quarterly intangible asset amortization, is expected to lie between $15 million and $20 million in the third quarter, with a fourth quarter sequential step-down similar to prior-year trends.
Net interest expense is expected to be fairly stable sequentially in the third quarter. Net cash capital expenditures for 2025 are expected to be in the range of $525 million-$575 million. Effective tax rate (on adjusted income before taxes) is expected to be 27-28% for the third quarter.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Knight-Swift has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Knight-Swift has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.