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Sep 30, 2022
Knight-Swift Q3 2022 Earnings Report
Knight-Swift reported strong operating results across all segments despite a shifting freight environment. Revenue increased, but operating income and net income decreased compared to the same quarter last year.
Key Takeaways
Knight-Swift Transportation Holdings Inc. reported a decrease in net income attributable to Knight-Swift to $194.8 million and an adjusted EPS of $1.27 for Q3 2022. Consolidated total revenue grew by 15.5%, while consolidated operating income decreased by 1.7% to $265.4 million. The company is focused on synergy opportunities and system integrations, especially within the LTL segment.
Consolidated total revenue increased by 15.5%, while operating income decreased by 1.7%.
Truckload segment operated with an 81.8% Adjusted Operating Ratio.
LTL segment improved Adjusted Operating Ratio by 300 basis points year-over-year to 84.5%.
Logistics segment saw a 20.1% load count growth.
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 for full-year 2022 to range from $5.17 to $5.22.
Positive Outlook
- Year-over-year increase in LTL revenue and margin, but typical sequential declines
- Intermodal margins to remain in the high single digits with volumes improving year-over-year
- Continued growth in revenue and operating income in non-reportable
- Approximate tax rate of 25% for the full year 2022
- Net Cash Capex for the full year 2022 expected range of $525M – $575M
Challenges Ahead
- Rates inflect negatively year-over-year as the moderating spot market yields less non-contract opportunities
- Stable truck count with typical sequential declines in miles per tractor
- Stable Logistics load volumes with reduced revenue per load and an operating ratio in the mid-to-high 80's
- Inflationary pressure in most cost areas including driver pay, maintenance, equipment, and non-driving labor
- Sequential increase in interest expense due to higher rates
Revenue & Expenses
Visualization of income flow from segment revenue to net income