Knight-Swift Transportation Holdings Inc. (KNX) is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option.Factors Weighing on KNX Stock: High costs related to driver wages, equipment, maintenance, fuel and other expenses are restricting Knight-Swift’s bottom-line growth. During the first nine months of 2024, salaries, wages and benefits expenses rose 18.6% year over year, while operations and maintenance expenses climbed 20.9%. Escalating fuel costs (up 6.7% ...

A month has gone by since the last earnings report for Knight-Swift Transportation Holdings (KNX) . Shares have added about 8.2% 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. Earnings Beat in Q3Knight-Sw ...

Financial Performance - Consolidated operating income decreased 48.3% to $165.4 million for the year-to-date period ended September 30, 2024, compared to the same period last year[68]. - Net income attributable to Knight-Swift decreased 78.9% to $48.1 million for the year-to-date period ended September 30, 2024[68]. - Year-to-date net income decreased by $179.7 million to $48.1 million for the period ended September 30, 2024, compared to $227.8 million in the same period last year[79]. - Total revenue for Q3 2024 was $1,876.7 million, down from $2,019.9 million in Q3 2023[80]. - Adjusted Net Income Attributable to Knight-Swift for Q3 2024 was $54,447 thousand, compared to $67,162 thousand in Q3 2023, reflecting a decrease of 19%[126]. - Adjusted EPS for Q3 2024 was $0.34, down from $0.41 in Q3 2023, representing a decline of 17%[127]. - GAAP net income attributable to Knight-Swift for Q3 2024 was $30,464 thousand, compared to $60,194 thousand in Q3 2023, indicating a decrease of 49%[126]. - Total revenue for the quarter ended September 30, 2024, was $102.7 million, a 1.4% increase compared to $101.2 million in the same quarter of 2023[100]. Segment Performance - Truckload segment reported a 97.6% operating ratio, with a 14.9% year-over-year increase in revenue, excluding fuel surcharge and intersegment transactions, due to the inclusion of U.S. Xpress[68]. - LTL segment achieved a 91.5% operating ratio, with an adjusted operating ratio of 88.5%, primarily due to increased operating, maintenance, and labor costs[68]. - Logistics segment reported a 96.5% operating ratio, with revenue decreasing 2.7% and load count down 11.5% due to soft demand[68]. - Intermodal segment had a 102.8% operating ratio, with revenue per load declining 10.0% year-over-year[68]. - Truckload segment revenue for Q3 2024 was $1,258.2 million, a decrease of 8.9% compared to $1,380.8 million in Q3 2023[89]. - LTL segment revenue for Q3 2024 increased to $325,412 from $284,168 in Q3 2023, but operating income decreased to $24,556 from $32,275[132]. - Total revenue for the Logistics Segment was $143,581 thousand for the quarter ended September 30, 2024, down from $159,489 thousand in the same quarter of 2023, representing a decrease of 9.5%[133]. - The Intermodal Segment reported total revenue of $102,679 thousand for the quarter ended September 30, 2024, slightly up from $101,219 thousand in the same quarter of 2023, indicating a growth of 1.4%[134]. Cash Flow and Liquidity - Generated $524.7 million in operating cash flows and $116.2 million in Free Cash Flow during the year-to-date period ended September 30, 2024[68]. - As of September 30, 2024, Knight-Swift had $166.3 million in unrestricted cash and cash equivalents and $7.1 billion in stockholders' equity[68]. - Year-to-date cash flows from operations amounted to $524,741 thousand, a decrease of 66.5% compared to $873,502 thousand for the same period in 2023[140]. - Free cash flow for the year-to-date September 30, 2024, was reported at $116,249 thousand[135]. - The company reported a working capital surplus of $8.1 million as of September 30, 2024, a significant improvement from a working capital deficit of $116.3 million as of December 31, 2023[138]. Cost and Expense Management - Fuel expenses for Q3 2024 were $213.5 million, a decrease of 21.6% from $272.4 million in Q3 2023[106]. - Salaries, wages, and benefits increased by 2.2% to $726.4 million in Q3 2024, representing 38.7% of total revenue[105]. - Operations and maintenance expense for Q3 2024 was $142,418 thousand, a slight decrease of 0.3% compared to Q3 2023, while year-to-date expenses increased by 20.9% to $415,302 thousand[108]. - The company expects labor costs to remain inflationary, leading to potential future pay increases[105]. - The company expects to prudently decrease idle tractor and trailer capacity to reduce operations and maintenance expenses while remaining well-positioned for potential market changes[108]. Market and Economic Conditions - The national unemployment rate increased to 4.1% as of September 30, 2024, compared to 3.8% a year earlier[71]. - The US GDP grew by 3.0% quarter-over-quarter, up from 1.6% in the previous quarter, driven by increased consumer spending and private inventory investment[71]. - Inflation-sensitive operating expenses have increased due to rising costs in equipment, parts, and driver compensation, potentially affecting overall operational results[144]. Future Outlook and Strategic Initiatives - The company opened 34 new locations in the LTL segment and acquired the assets of DHE effective July 30, 2024[68]. - The company expects to open 4 more service centers by the end of 2024, enhancing its operational capacity[95]. - The company plans to purchase rather than lease the majority of its revenue equipment and terminal improvements in the remainder of 2024, which may increase depreciation and amortization expenses[113]. - The company has contracted with fuel suppliers to buy fuel at fixed prices to mitigate rising fuel costs, although these commitments cover only a small portion of total fuel consumption[148].

Knight-Swift Transportation Holdings Inc. (KNX) third-quarter 2024 adjusted earnings per share (EPS) of 34 cents beat the Zacks Consensus Estimate by a penny but declined 17.1% year over year. KNX’s bottom line was weighed down by a $6.6 million increase in net interest expense and a 6.1 percentage point increase in the effective tax rate. Find the latest EPS estimates and surprises on ZacksEarnings Calendar.Total revenues of $1.87 million missed the Zacks Consensus Estimate of $1.94 million and declined 7. ...

My previous investment thought on Knight-Swift Transportation Holdings (NYSE: KNX ) (published in August) was a buy rating because I saw more signs of KNX reaching the point of growth inflection. My updated view is a holdI focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. ...

Financial Data and Key Metrics Changes - Revenue, excluding fuel surcharge, decreased by 5.3% year-over-year, while adjusted operating income declined by 7.1% year-over-year [4][5] - GAAP earnings per diluted share for Q3 2024 was $0.19, and adjusted EPS was $0.34 [5] - Consolidated adjusted operating ratio was 93.9%, flat compared to the prior year, but showed sequential improvement over Q2 [5] Business Line Data and Key Metrics Changes - Truckload revenue, excluding fuel surcharge, decreased by 6.1% year-over-year, with revenue per loaded mile remaining flat [10][11] - LTL segment grew revenue, excluding fuel surcharge, by 16.7% year-over-year, driven by a 11.1% increase in shipments per day [13] - Logistics revenue decreased by 9.5% year-over-year, with load count down 21.1%, partially offset by a 13.6% increase in revenue per load [18] Market Data and Key Metrics Changes - The truckload market is showing signs of balance, with freight rates stabilizing and modest improvements observed [6][8] - The LTL market remains supportive, with steady rate improvements despite a slowing pace of year-over-year rate increases [12][13] - Intermodal revenue increased by 1.4% year-over-year, marking the first year-over-year revenue increase in six quarters [19] Company Strategy and Development Direction - The company is focused on disciplined pricing, cost control, and operational excellence, leveraging its unique suite of services to create value for customers [8][22] - Expansion of LTL capabilities and service territory is a priority, with significant investments made in new service centers [14][15] - The company aims to capture volume with new and existing customers, particularly as it goes through its first bid cycle with the expanded network [15][16] Management's Comments on Operating Environment and Future Outlook - Management believes the worst of the truckload cycle may be behind, with expectations for gradual improvement in market conditions [9][31] - The company anticipates a normal seasonal step down in LTL earnings and activities in Q4, offsetting projected truckload profit increases [22] - Management remains cautious but optimistic about capturing rate improvements and improving margins in 2025 [32][41] Other Important Information - The company experienced a $6.6 million increase in net interest expense and a significant rise in effective tax rates year-over-year [5] - The integration of U.S. Xpress is ongoing, with progress made on cost synergies, but challenges remain in revenue per mile compared to legacy businesses [61][64] Q&A Session Summary Question: Can you provide insights on the spot versus contract business? - Management indicated that spot business remains in the low double digits compared to contract business, with opportunities to flex capacity as market conditions improve [24][25] Question: What is the outlook for the market cycle next year? - Management expects a gradual improvement in the market, with low to mid-single-digit rate increases anticipated throughout the year [30][31] Question: How will cost inflation impact margins in 2025? - Management believes there are opportunities to manage costs effectively, with a focus on maintaining or improving cost per mile while capturing rate increases [37][41] Question: How is the integration of U.S. Xpress progressing? - The integration has been challenging due to market conditions, but cost synergies are being captured, and management is optimistic about future revenue improvements as market conditions stabilize [61][64]

Third Quarter 2024 Earnings AAA COOPER | US XPRESS | BARR-HUNN | ABILEME Disclosure This presentation, including documents incorporated herein by reference, will contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are sub ...

Knight-Swift Transportation Holdings (KNX) reported $1.88 billion in revenue for the quarter ended September 2024, representing a year-over-year decline of 7.1%. EPS of $0.34 for the same period compares to $0.41 a year ago.The reported revenue represents a surprise of -3.75% over the Zacks Consensus Estimate of $1.95 billion. With the consensus EPS estimate being $0.33, the EPS surprise was +3.03%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how th ...

Knight-Swift Transportation Holdings (KNX) came out with quarterly earnings of $0.34 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.03%. A quarter ago, it was expected that this trucking company would post earnings of $0.27 per share when it actually produced earnings of $0.24, delivering a surprise of -11.11%.Over the las ...

Exhibit 99.1 October 23, 2024 Phoenix, Arizona Knight-Swift Transportation Holdings Inc. Reports Third Quarter 2024 Revenue and Earnings Knight-Swift Transportation Holdings Inc. (NYSE: KNX) ("Knight-Swift" or "the Company"), one of the largest and most diversified freight transportation companies, operating the largest full truckload fleet in North America, today reported third quarter 2024 net income attributable to Knight-Swift of $30.5 million and Adjusted Net Income Attributable to Knight-Swift of $54. ...