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Jun 30, 2021

Forward Air Q2 2021 Earnings Report

Reported highest ever monthly net income in June and highest quarterly revenue and operating income.

Key Takeaways

Forward Air reported record second-quarter results, driven by focus on Expedited Freight and Intermodal segments and solid revenue management. Revenue exceeded guidance, and net income per diluted share also surpassed expectations.

Achieved highest net income for the month of June.

Second quarter revenue exceeded the high end of guidance range.

Net income per diluted share exceeded the high end of guidance range.

Operating revenues increased almost 40% year-over-year.

Total Revenue
$421M
Previous year: $282M
+49.3%
EPS
$1.11
Previous year: $0.33
+236.4%
Gross Profit
$87M
Previous year: $46.5M
+87.0%
Cash and Equivalents
$50.8M
Previous year: $80.9M
-37.2%
Free Cash Flow
$17.5M
Previous year: $17.8M
-1.6%
Total Assets
$1.08B
Previous year: $1.07B
+0.9%

Forward Air

Forward Air

Forward Air Revenue by Segment

Forward Guidance

The Company expects year-over-year revenue growth of 28% to 32% and net income per diluted share to be between $1.03 to $1.07 for the third quarter 2021.

Positive Outlook

  • Expects year-over-year revenue growth of 28% to 32% in Q3 2021.
  • Guides net income per diluted share to be between $1.03 to $1.07 for Q3 2021.
  • Volumes in the third quarter 2021 are expected to significantly exceed volumes for the same period of 2020.
  • Volumes were strong year-over-year through July.
  • Expects record third quarter revenue and net income per diluted share.

Challenges Ahead

  • Net income per diluted share outlook reflects a $0.03 per share impact from professional fees related to an operational improvement project.
  • Expects a typical slowdown in volumes in the third quarter as compared to the second quarter.
  • Economic factors such as recessions, inflation, higher interest rates and downturns in customer business cycles
  • The COVID-19 pandemic
  • Seasonal trends

Revenue & Expenses

Visualization of income flow from segment revenue to net income