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Knight-Swift Q4 Earnings Beat Estimates, Increase Year Over Year
KNXKnight-Swift Transportation (KNX) ZACKS·2025-01-24 19:51

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 71.7millionoperatinglossinQ42023,anda5.8percentagepointdecreaseintheeffectivetaxrate[1]−Totalrevenuesof71.7 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 1.89billionanddeclined3.51.89 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 1.78billion[2]−Theadjustedoperatingratioimprovedbymorethan300basispointsto93.71.78 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 85.96million,withtheadjustedoperatingratioimprovingby170basispointsto92.285.96 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 15.21million,withtheadjustedoperatingratiorising900basispointsto94.515.21 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 10.56million[6]−Intermodalrevenues(excludinginter−segmenttransactions)increased4.910.56 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 44.7millionduetothewindingdownofthethird−partycarrierinsuranceprogram[8]LiquidityandGuidance−Knight−SwiftendedQ4withcashandcashequivalentsof44.7 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 166.34millionattheendofthepriorquarter[9]−Long−termdebt(excludingcurrentmaturities)decreasedto166.34 million at the end of the prior quarter [9] - Long-term debt (excluding current maturities) decreased to 1.44 billion from 1.50billionattheendofthepriorquarter[9]−AdjustedearningsforQ12025areexpectedtobeintherangeof29−33centspershare,withtheZacksConsensusEstimateat31cents[10]−ForQ22025,adjustedearningsareexpectedtobeintherangeof46−50centspershare,withtheZacksConsensusEstimateat52cents[10]−NetinterestexpenseisexpectedtodecreasemodestlyinQ12025andremainstableintoQ22025[11]−Netcashcapitalexpendituresfor2025areexpectedtobeintherangeof1.50 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 625million[11]−Theadjustedtaxratefor2025isexpectedtobearound24.5−25.5625 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 1.76andshowinga44.51.76 and showing a 44.5% year-over-year increase [15] - DAL's revenues of 15.56 billion surpassed the Zacks Consensus Estimate of 14.99billionandincreased9.414.99 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 1.62butshowinga4.11.62 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]