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Why Is Knight-Swift (KNX) Down 5.3% Since Last Earnings Report?
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It has been about a month since the last earnings report for Knight-Swift Transportation Holdings (KNX - Free Report) . Shares have lost about 5.3% 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 latest 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 Miss on Earnings in Q3
Knight-Swift Transportation Holdings Inc.’s third-quarter 2025 adjusted earnings of 32 cents per share missed the Zacks Consensus Estimate of 38 cents and declined 5.8% year over year. The reported figure came below the guided range of 36-42 cents.
Total revenues of $1.92 million surpassed the Zacks Consensus Estimate of $1.89 million and improved 2.7% year over year. Revenues, excluding truckload and LTL fuel surcharge, grew 2.4% year over year to $1.72 billion.
Total operating expenses (on a reported basis) grew 4.5% year over year to $1.87 billion.
KNX’s Q3 Segmental Results
Revenues (excluding fuel surcharge and inter-segment transactions) from Truckload totaled $1.08 billion, down 2.1% year over year, owing to a 2.3% decrease in loaded miles. Adjusted segmental operating income fell 15% year over year to $41.22 million. Adjusted operating ratio (operating expenses as a percentage of revenues) rose 60 basis points (bps) to 96.2%.
The Less-Than-Truckload segment generated revenues (excluding fuel surcharges) worth $340.48 million in the third quarter, up 21.5% year over year. Revenue per hundredweight, excluding fuel surcharge, increased 6.1% year over year, while revenue per shipment, excluding fuel surcharge, increased 6.6%. Adjusted segmental operating income was up 10.1% year over year to $32.05 million. Adjusted operating ratio rose 100 bps to 90.6% year over year.
Revenues from Logistics (excluding inter-segment transactions) amounted to $140.4 million, down 2.2% year over year, owing to a 6.2% decline in load count, partially offset by a 3.6% increase in revenue per load. Adjusted operating income increased 1.9% year over year to $8 million. The adjusted operating ratio fell 20 bps to 94.3%.
Intermodal revenues (excluding inter-segment transactions) totaled $94.08 million, down 8.4% year over year, owing to an 11.5% decrease in load count, partially offset by the increase in revenue per load.
Revenues within the All Other Segments for the third quarter increased 29.9%, and operating income grew 86.4% year over year, owing to growth in KNX’s warehousing and leasing businesses.
Liquidity
Knight-Swift exited the third quarter with cash and cash equivalents of $192.67 million compared with $216.32 million at the prior-quarter end. Long-term debt (excluding current maturities) was $1.05 billion compared with $1.39 billion at the end of the prior quarter.
KNX’s Guidance
KNX expects its fourth-quarter 2025 adjusted earnings per share guidance to be in the range of 34-40 cents. The Zacks Consensus Estimate of 39 cents lies within the guidance.
Truckload Segment revenues are expected to be fairly stable sequentially, with operating margins improving 250-350 basis points sequentially. LTL Segment revenues, excluding fuel surcharge, are expected to grow between 10% and 15% year over year in the fourth quarter of 2025. Logistics segment revenue and adjusted operating income are expected to increase by mid-teens percent sequentially. Intermodal segment load count is expected to improve mid-single-digit percent sequentially, with the adjusted operating ratio to remain fairly stable sequentially.
All Other Segments' operating income, before including the $11.7 million quarterly intangible asset amortization, is expected to remain break-even in the fourth quarter.
Net interest expense is expected to decline modestly sequentially in the fourth quarter. Effective tax rate (on adjusted income before taxes) is expected to be 23%-24% for the fourth quarter.
Net cash capital expenditures for 2025 are now expected to be in the range of $475 million- $525 million compared with the prior guidance of $525 million-$575 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -10.98% due to these changes.
VGM Scores
At this time, Knight-Swift has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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. It's no surprise Knight-Swift has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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Why Is Knight-Swift (KNX) Down 5.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Knight-Swift Transportation Holdings (KNX - Free Report) . Shares have lost about 5.3% 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 latest 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 Miss on Earnings in Q3
Knight-Swift Transportation Holdings Inc.’s third-quarter 2025 adjusted earnings of 32 cents per share missed the Zacks Consensus Estimate of 38 cents and declined 5.8% year over year. The reported figure came below the guided range of 36-42 cents.
Total revenues of $1.92 million surpassed the Zacks Consensus Estimate of $1.89 million and improved 2.7% year over year. Revenues, excluding truckload and LTL fuel surcharge, grew 2.4% year over year to $1.72 billion.
Total operating expenses (on a reported basis) grew 4.5% year over year to $1.87 billion.
KNX’s Q3 Segmental Results
Revenues (excluding fuel surcharge and inter-segment transactions) from Truckload totaled $1.08 billion, down 2.1% year over year, owing to a 2.3% decrease in loaded miles. Adjusted segmental operating income fell 15% year over year to $41.22 million. Adjusted operating ratio (operating expenses as a percentage of revenues) rose 60 basis points (bps) to 96.2%.
The Less-Than-Truckload segment generated revenues (excluding fuel surcharges) worth $340.48 million in the third quarter, up 21.5% year over year. Revenue per hundredweight, excluding fuel surcharge, increased 6.1% year over year, while revenue per shipment, excluding fuel surcharge, increased 6.6%. Adjusted segmental operating income was up 10.1% year over year to $32.05 million. Adjusted operating ratio rose 100 bps to 90.6% year over year.
Revenues from Logistics (excluding inter-segment transactions) amounted to $140.4 million, down 2.2% year over year, owing to a 6.2% decline in load count, partially offset by a 3.6% increase in revenue per load. Adjusted operating income increased 1.9% year over year to $8 million. The adjusted operating ratio fell 20 bps to 94.3%.
Intermodal revenues (excluding inter-segment transactions) totaled $94.08 million, down 8.4% year over year, owing to an 11.5% decrease in load count, partially offset by the increase in revenue per load.
Revenues within the All Other Segments for the third quarter increased 29.9%, and operating income grew 86.4% year over year, owing to growth in KNX’s warehousing and leasing businesses.
Liquidity
Knight-Swift exited the third quarter with cash and cash equivalents of $192.67 million compared with $216.32 million at the prior-quarter end. Long-term debt (excluding current maturities) was $1.05 billion compared with $1.39 billion at the end of the prior quarter.
KNX’s Guidance
KNX expects its fourth-quarter 2025 adjusted earnings per share guidance to be in the range of 34-40 cents. The Zacks Consensus Estimate of 39 cents lies within the guidance.
Truckload Segment revenues are expected to be fairly stable sequentially, with operating margins improving 250-350 basis points sequentially. LTL Segment revenues, excluding fuel surcharge, are expected to grow between 10% and 15% year over year in the fourth quarter of 2025. Logistics segment revenue and adjusted operating income are expected to increase by mid-teens percent sequentially. Intermodal segment load count is expected to improve mid-single-digit percent sequentially, with the adjusted operating ratio to remain fairly stable sequentially.
All Other Segments' operating income, before including the $11.7 million quarterly intangible asset amortization, is expected to remain break-even in the fourth quarter.
Net interest expense is expected to decline modestly sequentially in the fourth quarter. Effective tax rate (on adjusted income before taxes) is expected to be 23%-24% for the fourth quarter.
Net cash capital expenditures for 2025 are now expected to be in the range of $475 million- $525 million compared with the prior guidance of $525 million-$575 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -10.98% due to these changes.
VGM Scores
At this time, Knight-Swift has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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. It's no surprise Knight-Swift has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.