Core Viewpoint - Knight-Swift Transportation's third-quarter earnings report missed analysts' expectations, leading to a 3.5% decline in after-hours trading, and the fourth-quarter outlook is below consensus estimates [1][4]. Financial Performance - The company reported third-quarter adjusted earnings per share (EPS) of 32 cents, missing the consensus estimate of 37 cents and management's guidance of 36 to 42 cents [3][4]. - The headline EPS for the quarter was only 5 cents, with $58 million of "unusual items" impacting the results [3]. - Fourth-quarter guidance was issued at 34 to 40 cents, compared to a 40-cent consensus estimate [4]. Operational Insights - Knight-Swift's truckload (TL) unit experienced a 2% year-over-year decline in revenue, attributed to a 7% decrease in average tractors in service, although this was partially offset by a 5% increase in revenue per tractor [5]. - The company noted improvements in loaded miles per tractor, which increased by 5% year-over-year for eight of the past nine quarters [5]. - The adjusted operating ratio for the TL unit was reported at 96.2%, which is 60 basis points worse year-over-year and 160 basis points worse sequentially [6]. Market Conditions - The company is observing early impacts on the driver pool due to the cessation of non-domiciled CDL issuances and increased enforcement of English language proficiency [2]. - Early bid season activity is showing low-single-digit rate increases, with reduced customer churn as shippers consolidate their carrier partnerships [2]. - Knight-Swift remains focused on cost-cutting and attracting appropriately-priced freight to its network [2].