Core Viewpoint - Knight-Swift Transportation Holdings reported a mixed performance in its latest earnings report, with adjusted earnings exceeding estimates but total revenues falling short, indicating potential challenges ahead for the company [1][2][3]. Financial Performance - Adjusted earnings for Q4 2024 were 36 cents per share, surpassing the Zacks Consensus Estimate of 33 cents and showing over 100% year-over-year improvement [2]. - Total revenues amounted to $1.86 billion, missing the Zacks Consensus Estimate of $1.89 billion and declining 3.5% year-over-year [3]. - Operating expenses decreased by 6.6% year-over-year to $1.78 billion, leading to an improved adjusted operating ratio of 93.7%, which is over 300 basis points better than the prior-year quarter [3]. Segment Performance - Truckload segment revenues totaled $1.10 billion, down 4.4% year-over-year, with adjusted operating income increasing by 22.9% to $85.96 million [4]. - The Less-Than-Truckload segment generated revenues of $278.89 million, up 20.2% year-over-year, but adjusted operating income fell 54.9% to $15.21 million [5]. - Logistics revenues were $167.99 million, a 2.1% year-over-year increase, while intermodal revenues reached $99.04 million, up 4.9% year-over-year [6]. Liquidity and Debt - Knight-Swift ended Q4 with cash and cash equivalents of $218.26 million, an increase from $166.34 million in the previous quarter, while long-term debt decreased to $1.44 billion from $1.50 billion [8]. Guidance - The company expects adjusted EPS for Q1 2025 to be in the range of 29-33 cents and for Q2 2025 to be between 46-50 cents [9]. - Net cash capital expenditures for 2025 are projected to be between $575 million and $625 million, with an expected tax rate of 24.5-25.5% [10]. Market Sentiment - Estimates for Knight-Swift have trended upward over the past month, with the stock currently holding a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [11][13]. - The company has a subpar Growth Score of D, a Momentum Score of C, and a Value Score of C, placing it in the middle 20% for investment strategy [12].

Financial Performance - Consolidated total revenue for 2024 was $7.4 billion, a 3.8% increase from 2023[269] - Consolidated net income attributable to Knight-Swift decreased by 45.8% to $117.6 million in 2024[269] - Total revenue for 2024 reached $5,034,941, a 7.2% increase from $4,698,655 in 2023[288] - The operating income for 2024 was $243,388 thousand, down from $338,153 thousand in 2023, indicating a decrease of around 28.0%[353] - The adjusted net income attributable to Knight-Swift for 2024 was $172,085 thousand, compared to $278,739 thousand in 2023, reflecting a decline of about 38.2%[348] - The adjusted operating income for 2024 was $347,867 thousand, compared to $434,578 thousand in 2023, which is a decline of about 20.0%[353] - The effective tax rate for 2024 was 22.1%, compared to 20.3% in 2023, primarily due to reduced pre-tax earnings and tax benefits from mark-to-market adjustments[341] Segment Performance - Truckload segment reported a 96.7% operating ratio in 2024, with a 9.4% increase in revenue, excluding fuel surcharge[270] - LTL segment achieved a 92.9% operating ratio in 2024, with a 16.2% increase in revenue, excluding fuel surcharge[270] - Logistics segment experienced a 95.9% operating ratio in 2024, with an 11.1% decrease in load count leading to a 1.3% decrease in revenue[270] - Intermodal segment had a 102.4% operating ratio in 2024, with a 3.5% increase in load count resulting in a 10.0% decrease in operating loss[270] - The truckload segment's total revenue for 2024 was $4,698,655 thousand, a decrease from $5,034,941 thousand in 2023, representing a decline of about 6.7%[357] - Total revenue for the LTL segment increased to $1,235,547,000 in 2024 from $1,082,454,000 in 2023, representing a growth of approximately 14.2%[360] - Total revenue for the Logistics segment decreased to $570,001,000 in 2024 from $582,250,000 in 2023, a decline of approximately 2.5%[362] - Total revenue for the Intermodal segment decreased to $387,232,000 in 2024 from $410,549,000 in 2023, reflecting a decline of about 5.7%[363] Cash Flow and Liquidity - Operating cash flows generated in 2024 amounted to $799.1 million, with Free Cash Flow at $233.8 million[270] - The company ended 2024 with $1.1 billion in unrestricted cash and cash equivalents[270] - Net cash provided by operating activities was $799,063,000 in 2024, down from $1,161,676,000 in 2023, a decrease of approximately 31.2%[379] - Free cash flow for 2024 was reported at $233,836,000, indicating a significant cash generation capability despite operational challenges[364] - Total unrestricted liquidity as of December 31, 2024, was $1,082,493,000, providing a solid financial cushion for the company[366] Expenses and Costs - Consolidated salaries, wages, and benefits increased by 13.8% to $2.82 billion in 2024, influenced by the full-year expense of U.S. Xpress[308] - Fuel expenses decreased by 0.8% to $871.1 million in 2024, attributed to lower average weekly fuel prices of $3.76 per gallon compared to $4.20 in 2023[311] - Operations and maintenance expenses rose by 15.5% to $546.9 million in 2024, driven by the inclusion of U.S. Xpress expenses and increased maintenance costs[314] - Insurance and claims expenses decreased by 31.8% to $415.7 million in 2024, reflecting the exit from the third-party insurance business[316] - Interest expense increased by 34.7% to $171.2 million, due to higher interest rates and increased average debt balance[335] Operational Metrics - Average tractors in the Truckload segment increased to 22,791 in 2024 from 20,948 in 2023[271] - Average revenue per tractor in the Truckload segment decreased by 7.6% to $193,436[288] - LTL shipments per day increased by 9.8% to 20,756, reflecting growth in operational capacity[294] - Logistics load count, excluding U.S. Xpress, declined by 26.3% year-over-year, while including U.S. Xpress, the decline was 11.1%[300] Future Outlook - The company expects labor costs to remain inflationary, impacting future salaries, wages, and benefits expenses[309] - The company expects net cash capital expenditures to be in the range of $575,000,000 to $625,000,000 in 2025, focusing on fleet replacements and network expansions[367] Miscellaneous - The average diesel price per gallon in the US decreased to $3.76 for 2024 from $4.20 for 2023, impacting operating costs related to fuel[412] - A hypothetical one percentage point increase in interest rates would increase annual interest expense by $21.1 million, given the current variable interest rate exposure[411] - Claims accruals could increase by $43.4 million if claims development factors based on historical experience increased by 10%[385] - The company has a weighted average interest rate of 6.0% as of December 31, 2024, related to its variable rate debt[411] - The company experienced inflation-sensitive operating expenses, impacting costs for equipment acquisition, repairs, and driver compensation[383] - Fair value assessments for goodwill and indefinite-lived intangible assets were conducted, confirming that fair value exceeded carrying value as of June 30, 2024[390] - The company has not used derivative financial instruments to hedge fuel price exposure but continues to evaluate this possibility[412] - Management's estimates and assumptions significantly impact the reported amounts of assets, liabilities, revenue, and expenses in the financial statements[384]

Earnings Performance - Knight-Swift Transportation Holdings Inc (KNX) reported Q4 2024 adjusted earnings of 36 cents per share, beating the Zacks Consensus Estimate of 33 cents and showing a 300% year-over-year improvement [1] - The earnings improvement was driven by the closure of the third-party insurance business, which had generated a $71.7 million operating loss in Q4 2023, and a 5.8 percentage point decrease in the effective tax rate [1] - Total revenues of $1.86 billion missed the Zacks Consensus Estimate of $1.89 billion and declined 3.5% year-over-year [2] - Revenues excluding truckload and LTL fuel surcharge fell 0.9% year-over-year to $1.67 billion [2] - Total operating expenses decreased 6.6% year-over-year to $1.78 billion [2] - The adjusted operating ratio improved by more than 300 basis points to 93.7% [2] Segment Performance - Truckload segment revenues (excluding fuel surcharge) totaled $1.10 billion, down 4.4% year-over-year due to a 3.7% decrease in loaded miles [4] - Adjusted Truckload operating income grew 22.9% year-over-year to $85.96 million, with the adjusted operating ratio improving by 170 basis points to 92.2% [4] - Less-Than-Truckload (LTL) segment revenues (excluding fuel surcharges) increased 20.2% year-over-year to $278.89 million, driven by a 13.3% increase in shipments per day [5] - Adjusted LTL operating income decreased 54.9% to $15.21 million, with the adjusted operating ratio rising 900 basis points to 94.5% [5] - Logistics segment revenues (excluding inter-segment transactions) increased 2.1% year-over-year to $167.99 million, but adjusted operating income decreased 6.4% to $10.56 million [6] - Intermodal revenues (excluding inter-segment transactions) increased 4.9% year-over-year to $99.04 million, driven by a 10.2% increase in load count [7] - All Other Segments revenues declined 36.4% year-over-year to $44.7 million due to the winding down of the third-party carrier insurance program [8] Liquidity and Guidance - Knight-Swift ended Q4 with cash and cash equivalents of $218.26 million, up from $166.34 million at the end of the prior quarter [9] - Long-term debt (excluding current maturities) decreased to $1.44 billion from $1.50 billion at the end of the prior quarter [9] - Adjusted earnings for Q1 2025 are expected to be in the range of 29-33 cents per share, with the Zacks Consensus Estimate at 31 cents [10] - For Q2 2025, adjusted earnings are expected to be in the range of 46-50 cents per share, with the Zacks Consensus Estimate at 52 cents [10] - Net interest expense is expected to decrease modestly in Q1 2025 and remain stable into Q2 2025 [11] - Net cash capital expenditures for 2025 are expected to be in the range of $575 million to $625 million [11] - The adjusted tax rate for 2025 is expected to be around 24.5-25.5% [11] Industry Comparison - Delta Air Lines (DAL) reported Q4 2024 earnings of $1.85 per share, beating the Zacks Consensus Estimate of $1.76 and showing a 44.5% year-over-year increase [15] - DAL's revenues of $15.56 billion surpassed the Zacks Consensus Estimate of $14.99 billion and increased 9.4% year-over-year, driven by strong holiday travel demand [16] - J.B. Hunt Transport Services (JBHT) reported Q4 2024 earnings per share of $1.53, missing the Zacks Consensus Estimate of $1.62 but showing a 4.1% year-over-year increase [17] - JBHT's total operating revenues of $3.15 billion narrowly beat the Zacks Consensus Estimate of $3.13 billion but declined 4.8% year-over-year due to lower fuel surcharge revenues and yield pressure in its Intermodal segment [17] Stock Performance - KNX shares have gained 10.6% over the past six months, outperforming the 3.1% rise of the industry [12]

Core Insights - The investment stance on Knight-Swift Transportation Holdings (NYSE: KNX) is currently a hold rating, pending further data to confirm its trajectory [1] Group 1: Investment Approach - The investment strategy focuses on long-term investments while also considering short-term opportunities to uncover alpha [1] - The analysis is based on a bottom-up approach, emphasizing the fundamental strengths and weaknesses of individual companies [1] - The investment horizon is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Knight-Swift Transportation Holdings Inc. (NYSE:KNX) Q4 2024 Earnings Conference Call January 22, 2025 4:30 PM ET Company Participants Brad Stewart - Treasurer, SVP, IR Adam Miller - CEO Andrew Hess - CFO Conference Call Participants Tom Wadewitz - UBS Ken Hoexter - Bank of America Ravi Shanker - Morgan Stanley Scott Group - Wolfe Research Chris Wetherbee - Wells Fargo Jon Chappell - Evercore ISI Daniel Imbro - Stephens, Inc. David Hicks - Raymond James Brian Ossenbeck - JPMorgan Bascome Majors - Susquehann ...

Earnings Call Overview - The earnings call for Knight-Swift Transportation Holdings Inc (NYSE: KNX) for Q4 2024 was held on January 22, 2025, at 4:30 PM ET [1] - Key participants included Adam Miller (CEO), Andrew Hess (CFO), and Brad Stewart (Treasurer, SVP, IR) [2][4] - The call was scheduled to last one hour and included a Q&A session with analysts [4] Topics Covered - The company planned to discuss Q4 2024 results, current market conditions, and earnings guidance [4] - Slides accompanying the call were made available on the company's investor website [4] Q&A Session - Participants were limited to one question each to allow for broader participation [4] - If time permitted, additional questions could be addressed by rejoining the queue [4] - A contact number (602-606-6349) was provided for follow-up questions not addressed during the call [4]

For the quarter ended December 2024, Knight-Swift Transportation Holdings (KNX) reported revenue of $1.86 billion, down 3.5% over the same period last year. EPS came in at $0.36, compared to $0.09 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.89 billion, representing a surprise of -1.62%. The company delivered an EPS surprise of +9.09%, with the consensus EPS estimate being $0.33.While investors closely watch year-over-year changes in headline numbers -- revenue ...

Knight-Swift Transportation Holdings (KNX) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.09%. A quarter ago, it was expected that this trucking company would post earnings of $0.33 per share when it actually produced earnings of $0.34, delivering a surprise of 3.03%.Over the last ...

Exhibit 99.1 January 22, 2025 Phoenix, Arizona Knight-Swift Transportation Holdings Inc. Reports Fourth Quarter 2024 Revenue and Earnings Adam Miller, CEO of Knight-Swift, commented, "The fourth quarter showed the benefits of our diversified business model, as improvement in our truckload segment offset cost headwinds from the significant expansion in our LTL segment. Truckload freight conditions in the fourth quarter largely played out as expected, as the hurricane and port strike disruptions at the beginn ...

Knight-Swift Transportation Holdings Inc. (KNX) is scheduled to report fourth-quarter 2024 results on Jan. 22, after market close.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Knight-Swift has a disappointing earnings surprise history, having lagged the Zacks Consensus Estimate in three of the preceding four quarters (outpaced the mark in the remaining quarter), the average miss being 31.44%.Let’s see how things have shaped up for KNX this earnings season.Q4 ExpectationsThe Zacks ...