Knight-Swift Transportation (US:KNX) ZACKSยท2025-09-26 18:11Core Insights - Knight-Swift Transportation Holdings Inc. (KNX) shares have declined by 27.6% over the past year, underperforming the transportation-truck industry's decline of 23.4% [1][9] Financial Performance - High costs related to driver wages, equipment, maintenance, and fuel are hindering Knight-Swift's bottom-line growth, with salaries, wages, and benefits expenses rising by 6.6% year over year in the first half of 2025 [5] - The company's cash and equivalents stood at $216.32 million at the end of Q2 2025, which is significantly lower than its long-term debt of $1.39 billion, indicating insufficient cash to meet debt obligations [6] - Knight-Swift's current ratio was 0.89 at the end of Q2 2025, suggesting potential difficulties in meeting short-term liabilities as a current ratio below 1 is undesirable [7] Industry Challenges - The trucking industry is facing a persistent driver shortage, exacerbated by retiring drivers and a lack of appeal for younger generations to enter the profession [8] - The current macroeconomic environment is contributing to declining consumer sentiment and increasing uncertainty, leading to revised lower earnings expectations for KNX [9] Earnings Estimates - Knight-Swift expects its Q3 2025 adjusted earnings to be in the range of 36-42 cents per share, with the Zacks Consensus Estimate currently at 40 cents per share [9][10] - Over the past 90 days, the Zacks Consensus Estimate for current-quarter earnings has been revised downward by 9%, with the estimate for 2025 earnings at $1.49 per share, reflecting a 3.8% decline [11] Industry Ranking - The trucking industry has a Zacks Industry Rank of 210 out of 248 groups, placing it in the bottom 15% of Zacks industries, which indicates a weak performance relative to other sectors [12][13]