Knight-Swift Transportation (US:KNX) ZACKS·2025-04-09 15:21Company Overview - Knight-Swift Transportation Holdings Inc. (KNX) is currently facing multiple headwinds, making it an unimpressive investment option [1] - The company's shares have lost 26% year-to-date, compared to a 22.4% decline in the transportation-truck industry [2] Earnings Estimates - The Zacks Consensus Estimate for first-quarter 2025 earnings has been revised downward by 9.6% in the past 90 days [2] - For the current year, the consensus mark for earnings has been revised down by 7.4% in the same timeframe, indicating a lack of confidence from brokers [2] Financial Performance - KNX has a Zacks Rank of 5 (Strong Sell) and a Value Score of C, reflecting its unattractiveness [6] - The company has a negative earnings surprise history, lagging the Zacks Consensus Estimate in two of the last four quarters with an average miss of 8.96% [6] Cost Structure - High costs related to driver wages, equipment, maintenance, and fuel are restricting bottom-line growth, with salaries, wages, and benefits expenses rising 13.8% year-over-year in 2024 [7] - Total operating expenses increased by 5.3% year-over-year to $7.16 billion in 2024 [7] Leverage and Debt - KNX's cash and equivalents were $166.35 million at the end of Q3 2024, which is significantly lower than its long-term debt of $1.50 billion, indicating insufficient cash to meet debt obligations [8] Industry Context - The trucking industry is facing a persistent driver shortage, complicating recruitment as older drivers retire and younger generations show little interest in these jobs [9] - The industry has a Zacks Industry Rank of 234 out of 248 groups, placing it in the bottom 5%, which negatively impacts stock performance [10]