Loading...
•
Jun 30, 2024
Knight-Swift Q2 2024 Earnings Report
Knight-Swift's Q2 2024 performance was impacted by a challenging truckload market, offset by strong LTL growth and strategic cost management.
Key Takeaways
Knight-Swift Transportation Holdings reported a mixed Q2 2024, with consolidated total revenue increasing by 18.9% to $1.8 billion, driven by the U.S. Xpress acquisition. However, net income attributable to Knight-Swift decreased to $20.3 million, and operating income fell by 32.5% to $63.5 million. Adjusted EPS was $0.24, including a $0.06 negative impact from a $12.5 million charge for an auto liability claim settlement.
Consolidated total revenue increased by 18.9% year-over-year to $1.8 billion, primarily due to the acquisition of U.S. Xpress.
GAAP earnings per diluted share were $0.13, while Adjusted EPS was $0.24, which includes a $0.06 negative impact from an auto liability claim settlement.
The LTL segment saw a 15.1% increase in revenues, excluding fuel surcharge, and an Adjusted Operating Ratio of 85.9%.
The company opened 11 new LTL locations during the quarter and plans to open 20 more by the end of the year.
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 anticipates Adjusted EPS to range from $0.31 to $0.35 for Q3 2024 and $0.32 to $0.36 for Q4 2024, based on current market conditions and expected seasonality without factoring in a market inflection.
Positive Outlook
- Truckload segment revenue is expected to increase slightly sequentially in both Q3 and Q4.
- Truckload operating margins are projected to improve sequentially each quarter, leading to adjusted operating ratios in the low to mid-90s.
- LTL revenue, excluding fuel surcharge, is anticipated to grow by a low double-digit percentage year-over-year.
- LTL shipment count is expected to improve by a mid-single-digit percentage year-over-year in both Q3 and Q4.
- Logistics load count is projected to grow sequentially by a mid-single-digit percentage in Q3 and stabilize in Q4.
Challenges Ahead
- Truckload tractor count is expected to decrease modestly sequentially into Q3 before stabilizing in Q4.
- All Other segments operating income, excluding intangible asset amortization, is projected to be approximately $10-15 million for Q3 but modestly negative for Q4 due to seasonal slowdown.
- Net interest expense is expected to increase modestly sequentially in both Q3 and Q4.
- Intermodal operating ratio modestly below breakeven by the fourth quarter.
- The timing of an inflection in market conditions has proven especially difficult to predict during this cycle
Revenue & Expenses
Visualization of income flow from segment revenue to net income