Why Is Knight-Swift (KNX) Down 5.3% Since Last Earnings Report?

Core Insights - Knight-Swift Transportation Holdings Inc. reported a miss on earnings for Q3 2025, with adjusted earnings of 32 cents per share, falling short of the Zacks Consensus Estimate of 38 cents and declining 5.8% year over year [3] - Total revenues for the quarter were $1.92 billion, exceeding the Zacks Consensus Estimate of $1.89 billion and showing a year-over-year improvement of 2.7% [3] Financial Performance - Total operating expenses increased by 4.5% year over year to $1.87 billion [4] - Truckload segment revenues were $1.08 billion, down 2.1% year over year, with adjusted segmental operating income falling 15% to $41.22 million [5] - The Less-Than-Truckload (LTL) segment saw revenues of $340.48 million, up 21.5% year over year, with adjusted segmental operating income increasing 10.1% to $32.05 million [6] - Logistics segment revenues amounted to $140.4 million, down 2.2% year over year, while adjusted operating income rose 1.9% to $8 million [7] - Intermodal revenues totaled $94.08 million, down 8.4% year over year, with a significant decrease in load count [8] Liquidity and Debt - Knight-Swift ended Q3 with cash and cash equivalents of $192.67 million, down from $216.32 million in the previous quarter, while long-term debt decreased to $1.05 billion from $1.39 billion [9] Guidance and Future Outlook - For Q4 2025, adjusted earnings per share are expected to be in the range of 34-40 cents, with the Zacks Consensus Estimate at 39 cents [10] - Truckload segment revenues are anticipated to remain stable, with operating margins expected to improve by 250-350 basis points sequentially [10] - LTL segment revenues are projected to grow between 10% and 15% year over year in Q4 2025 [11] - Net cash capital expenditures for 2025 are now expected to be between $475 million and $525 million, down from the previous guidance of $525 million to $575 million [13] Market Sentiment - There has been a downward trend in estimates, with the consensus estimate shifting down by 10.98% [14] - Knight-Swift currently holds a Zacks Rank of 5 (Strong Sell), indicating expectations of below-average returns in the coming months [16]