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Mar 31, 2024
Knight-Swift Q1 2024 Earnings Report
Knight-Swift reported a net loss attributable to Knight-Swift of $2.6 million and Adjusted Net Income Attributable to Knight-Swift of $19.8 million for Q1 2024.
Key Takeaways
Knight-Swift Transportation Holdings Inc. reported a consolidated total revenue of $1.8 billion for the first quarter of 2024, reflecting an 11.3% increase compared to the same quarter last year. However, the company experienced a net loss attributable to Knight-Swift of $2.6 million, with an adjusted net income of $19.8 million. The results were impacted by a challenging truckload market and weather disruptions, though the LTL segment showed healthy growth.
Consolidated total revenue increased by 11.3% year-over-year, primarily due to the acquisition of U.S. Xpress.
Net loss attributable to Knight-Swift was $2.6 million, while Adjusted Net Income was $19.8 million.
The LTL segment showed growth with a 12.6% increase in revenues, excluding fuel surcharge, and the opening of seven new locations.
The company is focused on efficiency and cost control to improve margins in the Truckload business, aiming for industry leadership in profitability.
Knight-Swift
Knight-Swift
Knight-Swift Revenue by Segment
Revenue by Segment
Truckload Revenue
CapyFin.comLTL Revenue
CapyFin.comLogistics Revenue
CapyFin.comIntermodal Revenue
CapyFin.comAll Other Revenue
CapyFin.com Forward Guidance
Knight-Swift expects Adjusted EPS to range from $0.26 to $0.30 for the second quarter of 2024 and from $0.31 to $0.35 for the third quarter of 2024, based on current market conditions and expected seasonality.
Positive Outlook
- Truckload Segment revenue up slightly sequentially in the second quarter and again into the third quarter with slight sequential improvements in operating margins resulting in mid-90’s operating ratios, including U.S. Xpress breakeven operating results through the second quarter and high-90’s Adjusted Operating Ratio in the third quarter
- Truckload tractor count down modestly sequentially into the second quarter before stabilizing for the third quarter
- Truckload miles per tractor increasing high-single digit percent year-over-year in the second quarter and low-single digit percent year-over-year in the third quarter as the prior year comparisons begin to include U.S. Xpress
- LTL revenue growth of 12-15% year-over-year as shipment count in the second and third quarters improves mid-to-high single digit percent year-over-year and revenue per hundredweight, excluding fuel surcharge, improves low-to-mid-teens percent year-over-year with an operating ratio in line with 2023 results
- Intermodal volumes flat year-over-year in the second quarter before improving high-single digit percent year-over-year in the third quarter, and operating ratios near breakeven
Challenges Ahead
- Because the timing of an inflection in market conditions has proven especially difficult to predict during this cycle, we are not reflecting an inflection in market conditions for the purposes of these forecasts but rather are basing these ranges on expected seasonality and a continuation of existing market conditions.
- Logistics volume up low single digit percent year-over-year in the second quarter and down mid-teens percent year-over-year in the third quarter as the prior year comparisons begin to include U.S. Xpress, with operating ratios in the mid-90’s
- All Other segments operating income of approximately $10-15 million for the second and third quarters before including the $11.7 million intangible asset amortization
- Net interest expense up modestly sequentially in the second quarter and stable into third quarter
- The factors described under "Forward-Looking Statements," among others, could cause actual results to materially vary from this guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income