A month has gone by since the last earnings report for Knight-Swift Transportation Holdings (KNX) . Shares have added about 7.8% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Knight-Swift due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Movin ...

In a recent report, Goldman Sachs singled out some notable surprises among the companies that saw an uptick in hedge fund ownership.As stocks that see increases in hedge fund ownership tend to perform well in their sectors, they are certainly worth keeping an eye on. But what about Knight-Swift (NYSE: KNX)?Is the transportation industry profitable?Judging by Goldman Sachs reports, it appears that Wall Street has set its sights on Knight-Swift Transportation, the largest truckload carrier in the U.S. Sure, t ...

Financial Performance - Consolidated operating income increased 224.3% to $66.7 million for the quarter ended March 31, 2025, compared to the same period last year [107]. - Net income attributable to Knight-Swift rose 1262.8% to $30.6 million for the quarter ended March 31, 2025 [107]. - Total revenue for the quarter was $1,824.4 million, slightly up from $1,822.5 million in the previous year [109]. - The company reported a $33.3 million increase in net income to $30.6 million in the first quarter of 2025, compared to a $2.6 million loss in the same period last year [128]. - Adjusted Operating Income increased by 59.7% year-over-year to $46,485, while GAAP Operating Income rose 92.7% to $44,600 [142]. - Adjusted Net Income attributable to Knight-Swift for Q1 2025 was $45,372,000, compared to $19,774,000 in Q1 2024 [207]. - Adjusted EPS for Q1 2025 was $0.28, up from $0.12 in Q1 2024 [208]. - Total revenue for Q1 2025 was $1,824,362,000, slightly up from $1,822,467,000 in Q1 2024 [212]. Segment Performance - Truckload segment achieved a 96.3% operating ratio, with revenue per loaded mile increasing 1.5% year-over-year for the first time in 10 quarters [108]. - LTL segment's operating ratio was 96.4%, with a 420 basis points year-over-year deterioration due to start-up costs and integration expenses [108]. - Logistics segment reported an 11.8% year-over-year revenue increase, with a gross margin of 18.1% [108]. - Intermodal segment's operating ratio was 102.0%, with a 1.1% decline in revenue per load year-over-year [108]. - Truckload Segment revenue increased by a low single-digit percent sequentially in the second quarter, with operating margins remaining stable [119]. - LTL Segment revenue, excluding fuel surcharge, grew by 25% - 30% year-over-year in the second quarter, driven by shipment count growth and yield improvement [119]. - Logistics Segment revenue decreased by a low single-digit percent sequentially in the second quarter, while the Adjusted Operating Ratio remained stable [125]. - Total revenue for the Truckload Segment was $1,192,550, a decrease of 5.6% from $1,263,015 in the same quarter of 2024 [216]. - Total revenue for the LTL Segment rose to $352,401, representing a 25% increase from $282,122 in the same quarter of 2024 [219]. - Total revenue for the Logistics Segment increased to $141,621, up 11.8% from $126,729 in the same quarter of 2024 [220]. Cash Flow and Liquidity - Generated $109.4 million in operating cash flows and $70.0 million in Free Cash Flow during the quarter [108]. - Free Cash Flow for the quarter ended March 31, 2025, was $69,991, reflecting a strong cash generation capability [222]. - Total unrestricted liquidity as of March 31, 2025, was $1,020,155, including cash and cash equivalents of $209,480 [223]. - Net cash provided by operating activities increased by $72,154 to $109,429 compared to the same quarter in 2024 [234]. - The working capital deficit improved to $193.8 million as of March 31, 2025, from $258.0 million as of December 31, 2024 [233]. Expenses and Costs - Salaries, wages, and benefits increased by $28,752,000 to $721,659,000, representing a 4.1% rise year-over-year [167]. - Fuel expenses decreased by $27,343,000 to $207,246,000, a decline of 11.7% compared to $234,589,000 in the previous year [170]. - Insurance and claims expenses dropped by $30,221,000 to $92,225,000, a decrease of 24.7% from $122,446,000 in Q1 2024 [176]. - Operating taxes and licenses increased by $3,037,000 to $34,366,000, reflecting a 9.7% rise year-over-year [181]. - Depreciation and amortization of property and equipment decreased by $4,386,000 to $177,479,000, a decline of 2.4% from $181,865,000 in the previous year [186]. - Amortization of intangibles increased by $703,000 to $19,246,000, a rise of 3.8% compared to $18,543,000 in Q1 2024 [189]. - Rental expense for Q1 2025 was $42,866,000, a decrease of 0.3% compared to Q1 2024 [190]. - Purchased transportation expense remained flat at $277,294,000, accounting for 15.2% of total revenue in Q1 2025 [194]. - Miscellaneous operating expenses decreased by 15.4% to $45,535,000, primarily due to an $8.9 million increase in gain on sales of property and equipment [197]. - Interest expense decreased by 2.5% to $40,203,000 in Q1 2025, attributed to lower interest rates despite higher debt balances [200]. - Income tax expense increased by 380.4% to $10,303,000, reflecting a higher pretax income with an effective tax rate of 25.4% [202]. Market Outlook and Strategic Initiatives - The company anticipates a cautious market outlook due to uncertainties in trade policy and potential impacts on freight volumes [114]. - The Truckload segment is expected to pursue opportunities through a decentralized operating model and further expand its network following the DHE Acquisition [123]. - The company anticipates an increase in depreciation and amortization expense as a percentage of revenue due to planned purchases of revenue equipment in 2025 [124]. - The company expects labor costs to remain inflationary, leading to potential future pay increases for driving associates [168]. - The company anticipates a lower pace of facility expansion in 2025 compared to 2024, focusing on revenue and margin expansion [151]. Debt and Financing - As of March 31, 2025, Knight-Swift had $209.5 million in unrestricted cash and $2.6 billion in outstanding debt [108]. - The 2021 Term Loan A-2 has an outstanding balance of $349.3 million, due September 2026 [236]. - The 2021 Term Loan A-3 has an outstanding balance of $769.5 million, due September 2026 [236]. - The 2023 Term Loan has an outstanding balance of $249.5 million, due September 2026 [236]. - Finance lease obligations total $566.9 million [236]. - The company reported a $10.4 million increase in cash used for acquisitions of leased properties [238]. - Net cash used in financing activities increased by $54.1 million, driven by an $87.0 million decrease in net borrowings on the 2021 Revolver [239]. Operational Challenges - The company experienced a qualified driver shortage, leading to increased compensation for driving associates [241]. - Operating expenses are sensitive to inflation, impacting costs for new equipment acquisition and maintenance [241]. - There have been no material changes in market risks as discussed in the previous annual report [243].

Knight-Swift Transportation Holdings Inc.’s (KNX) first-quarter 2025 adjusted earnings of 28 cents per share beat the Zacks Consensus Estimate of 25 cents and improved more than 100% year over year. The reported figure came below the lower end of the guidedrange of 29-33 cents.Total revenues of $1.82 million beat the Zacks Consensus Estimate of $1.81 million and improved marginally by 0.1% year over year. Revenues, excluding truckload and LTL fuel surcharge, grew 1.2% year over year to $1.63 billion.Total o ...

Group 1 - The investment approach focuses on long-term investments while incorporating short-term shorts to uncover alpha opportunities [1] - The analysis is based on bottom-up evaluation, emphasizing the fundamental strengths and weaknesses of individual companies [1] - The goal is to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Knight-Swift Transportation Holdings Inc. (NYSE:KNX) Q1 2025 Earnings Conference Call April 23, 2025 5:30 PM ET Company Participants Brad Stewart - Treasurer & Senior Vice President, Investor Relations Adam Miller - Chief Executive Officer Andrew Hess - Chief Financial Officer Conference Call Participants Jonathan Chappell - Evercore ISI Brian Ossenbeck - JPMorgan Chase Ken Hoexter - Bank of America Tom Wadewitz - UBS Scott Group - Wolfe Research Daniel Imbro - Stephens Chris Wetherbee - Wells Fargo Ravi Sh ...

Core Insights - Knight-Swift Transportation Holdings reported a revenue of $1.82 billion for Q1 2025, reflecting a year-over-year increase of 0.1% and an EPS of $0.28, up from $0.12 a year ago, indicating strong earnings growth [1] - The revenue exceeded the Zacks Consensus Estimate of $1.81 billion by 1.03%, while the EPS surpassed the consensus estimate of $0.25 by 12% [1] Financial Performance Metrics - Adjusted Operating Ratio was reported at 94.7%, matching the average estimate from five analysts, while the Operating Ratio was 96.3%, slightly above the average estimate of 95.7% [4] - Revenue excluding truckload and LTL fuel surcharge was $1.63 billion, exceeding the average estimate of $1.60 billion, representing a year-over-year change of 1.3% [4] - LTL Segment revenue, excluding fuel surcharge, was $305.26 million, surpassing the estimated $294.25 million, marking a significant year-over-year increase of 26.7% [4] - Operating revenue for the Intermodal segment was $91.10 million, which was below the estimated $99.98 million but still showed a year-over-year increase of 3.5% [4] - Operating revenue for the LTL segment was $352.40 million, exceeding the average estimate of $337.40 million, reflecting a year-over-year growth of 24.9% [4] - Truckload segment revenue was $1.05 billion, aligning with the average estimate but showing a year-over-year decline of 4.2% [4] Stock Performance - Knight-Swift's shares have returned -11.9% over the past month, underperforming the Zacks S&P 500 composite, which saw a decline of -6.6% [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance in the near term [3]

Financial Performance - Knight-Swift reported Q1 2025 net income of $30.6 million, a significant recovery from a net loss of $2.6 million in Q1 2024[1][3]. - Total revenue for Q1 2025 was $1.8 billion, reflecting a 0.1% increase year-over-year, while operating income surged 224.3% to $66.7 million[2][3]. - Adjusted EPS for Q1 2025 was $0.28, up 133.3% from $0.12 in Q1 2024, with GAAP EPS at $0.19 compared to a loss of $0.02 in the prior year[1][3]. - Operating income increased to $66,663,000 from $20,555,000 year-over-year[42]. - Adjusted Net Income Attributable to Knight-Swift for Q1 2025 was $45,372 thousand, up from $19,774 thousand in Q1 2024[53]. - Earnings per diluted share for Q1 2025 was $0.19, compared to a loss of $0.02 in Q1 2024[54]. - Free cash flow for Q1 2025 was reported at $69,991, after adjusting for cash flows from operations of $109,429 and capital expenditures of $122,048[67]. Segment Performance - The Truckload segment's revenue, excluding fuel surcharge, decreased by 4.2% year-over-year, but Adjusted Operating Income increased by 59.7%[5][12]. - LTL segment revenue grew 26.7% year-over-year, driven by a 24.2% increase in shipments per day, despite a decline in Adjusted Operating Income by 26.8% due to start-up costs[5][15][17]. - Logistics segment revenue increased by 11.8% year-over-year, with an Adjusted Operating Ratio of 95.5% and a gross margin of 18.1%[5][21]. - Intermodal segment revenue rose 3.5% year-over-year, with an improved operating ratio of 102.0%, down 360 basis points from the previous year[5][22]. - In Q1 2025, the Truckload segment reported total revenue of $1,192,550, a decrease from $1,263,015 in Q1 2024, while operating income increased to $44,600 from $23,147[59]. - The LTL segment's total revenue rose to $352,401 in Q1 2025 from $282,122 in Q1 2024, but operating income decreased to $12,694 from $20,287[63]. - The Logistics segment achieved revenue of $141,621 in Q1 2025, up from $126,729 in Q1 2024, with operating income increasing to $5,143 from $2,473[65]. - The Intermodal segment reported revenue of $91,103 in Q1 2025, slightly up from $87,985 in Q1 2024, with an operating loss reduced to $1,812 from $4,908[65]. Cash Flow and Capital Expenditures - Net cash provided by operating activities increased significantly to $109,429,000 from $37,275,000, a change of $72,154,000[25]. - Free Cash Flow for the quarter was $70,000,000, reflecting $109,429,000 in operating cash flows and $39,438,000 in cash capital expenditures[27]. - Expected net cash capital expenditures for the full year 2025 are projected to be between $575 million and $625 million[27]. - The company had $1.0 billion in unrestricted cash and available liquidity as of March 31, 2025[27]. Tax and Dividend Information - The effective tax rate for GAAP results was 25.4% in Q1 2025, a significant decrease from 55.1% in Q1 2024[10]. - The adjusted effective tax rate for Q1 2025 was 25.4%, compared to 19.7% in Q1 2024[58][67]. - The company declared a quarterly cash dividend of $0.18 per share, an increase from the previous $0.16 per share[11]. Operational Metrics - Average revenue per tractor in the Truckload segment increased by 1.9% to $47,838[45]. - Shipments per day in the LTL segment rose by 24.2% to 23,349[45]. - Average length of haul in the LTL segment increased by 11.5% to 639 miles[45]. - Operating ratio improved to 96.3% in Q1 2025 from 98.9% in Q1 2024[50]. - The adjusted operating ratio for the Truckload segment improved to 95.6% in Q1 2025 from 97.3% in Q1 2024[59]. Other Financial Information - Revenue for the All Other Segments decreased by 15.9% year-over-year to $85,079,000, primarily due to the winding down of the third-party carrier insurance program[24]. - Operating income for All Other Segments was a loss of $20,444,000, compared to an operating income of $6,038,000 in the previous year[23]. - Total current assets as of March 31, 2025, were $1,454,857 thousand, slightly up from $1,448,741 thousand as of December 31, 2024[44]. - Total liabilities decreased to $5,483,267 thousand from $5,581,727 thousand[44]. - The total operating expenses for the Truckload segment were $1,147,950 in Q1 2025, down from $1,239,868 in Q1 2024[59]. - The company recognized non-cash impairments of $28 in Q1 2025, compared to $3,099 in Q1 2024[59]. - Legal accruals in Q1 2025 included increased estimated exposure for accrued legal matters, impacting miscellaneous operating expenses[56].

Core Viewpoint - Knight-Swift Transportation Holdings (KNX) is expected to report quarterly earnings of $0.25 per share, reflecting a year-over-year increase of 108.3%, while revenues are anticipated to decline by 0.9% to $1.81 billion [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 12.5%, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue and Key Metrics - Analysts estimate 'Revenue, excluding truckload and LTL fuel surcharge' at $1.60 billion, a year-over-year change of -0.8% [5]. - The 'Truckload and LTL fuel surcharge' is projected to reach $185.70 million, down 11.4% from the previous year [5]. - 'Operating revenue- LTL' is expected to be $337.40 million, reflecting a year-over-year increase of 19.6% [6]. - The consensus for 'Revenue, excluding fuel surcharge and intersegment transactions- Truckload Segment' is $1.05 billion, indicating a decline of 3.7% year-over-year [6]. Operating Ratios - The average 'Operating Ratio' is projected at 95.7%, improving from 98.9% in the same quarter last year [6]. - The 'Adjusted Operating Ratio' is expected to be 94.7%, compared to 96.8% in the previous year [7]. - For 'Adjusted Operating Ratio - Truckload', the estimate is 95.3%, down from 97.3% year-over-year [7]. - The 'Adjusted Operating Ratio - LTL' is projected at 93.4%, compared to 90% in the same quarter last year [8]. - The 'Adjusted Operating Ratio - Logistics' is expected to be 93.7%, down from 97.1% in the previous year [8]. Operational Metrics - The consensus for 'Average tractors - Truckload' is 21,818, down from 23,314 year-over-year [9]. - 'Load count - Intermodal' is expected to reach 38,120, an increase from 33,647 in the previous year [9]. - The 'Average revenue per load - Intermodal' is projected at $2,684.32, compared to $2,615 last year [9]. Market Performance - Knight-Swift shares have returned -11.3% over the past month, underperforming the Zacks S&P 500 composite, which declined by -5.6% [9].

Company Overview - Saia is expected to report quarterly earnings of $2.77 per share, reflecting a year-over-year decline of 18.1% [3] - Revenue is anticipated to be $810.08 million, which is a 7.3% increase from the previous year [3] - The earnings report is scheduled for April 25, 2025, and actual results will significantly influence the stock price [2] Earnings Estimates and Revisions - The consensus EPS estimate has been revised down by 7.55% over the last 30 days, indicating a bearish sentiment among analysts [4] - The Most Accurate Estimate for Saia is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.01% [10] - Saia currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat [11] Earnings Surprise History - In the last reported quarter, Saia had an earnings surprise of +1.79%, with actual earnings of $2.84 per share compared to an expected $2.79 [12] - Over the past four quarters, Saia has only beaten consensus EPS estimates once [13] Industry Context - In the Zacks Transportation - Truck industry, Knight-Swift Transportation Holdings is expected to post earnings of $0.25 per share, showing a year-over-year increase of 108.3% [17] - Knight-Swift's revenue is projected to be $1.81 billion, down 0.9% from the previous year [17] - The consensus EPS estimate for Knight-Swift has been revised down by 12.5% over the last 30 days, resulting in an Earnings ESP of -2.25% and a Zacks Rank of 4 [18]