First look: Saia’s Q4 earnings

Core Insights - Saia reported a headline earnings miss for Q4, with revenue of $790 million, slightly above last year and consensus estimates, but earnings per share (EPS) of $1.77 fell 38% year-over-year and was 14 cents below consensus [1][2] Financial Performance - The company experienced a 1.5% decline in total tonnage, attributed to a 0.5% drop in shipments and a 1% decrease in weight per shipment [3][4] - Revenue per day remained flat year-over-year, with revenue per hundredweight increasing by 1.6% [2][4] - The operating ratio worsened to 91.9%, a 480 basis point increase year-over-year, exceeding management's guidance for deterioration [4][5] Cost Structure - Incremental insurance costs of $4.7 million related to prior accidents negatively impacted EPS, which would have aligned with expectations at $1.91 without these costs [2][4] - Salaries, wages, and benefits expenses rose by 280 basis points as a percentage of revenue, while depreciation and amortization increased by 110 basis points [5] Capital Investments and Future Outlook - The company has made significant capital investments over the past three years, enhancing its network and service capabilities [6] - Net capital expenditures are projected to decrease from $1.05 billion in 2024 to between $350 million and $400 million in 2026 [6] Market Reaction - Following the earnings report, shares of Saia fell by 4.2% in pre-market trading [7]