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Dec 31, 2022
Knight-Swift Q4 2022 Earnings Report
Knight-Swift reported a decrease in revenue and earnings for Q4 2022 due to a benign peak shipping season and inventory overhang.
Key Takeaways
Knight-Swift Transportation Holdings Inc. reported a decrease in net income attributable to Knight-Swift to $148.7 million for the fourth quarter of 2022, with an adjusted EPS of $1.00. The company faced a challenging environment with muted volumes and inventory overhang, but its three largest segments, Truckload, LTL, and Logistics, performed well.
Consolidated total revenue decreased by 4.0% to $1.7 billion compared to Q4 2021.
GAAP earnings per diluted share were $0.92, compared to $1.52 for the fourth quarter of 2021.
Adjusted Operating Ratios were 82.7% in Truckload, 85.5% in Less-than-Truckload, and 86.4% in Logistics.
The company anticipates improvement later in the year as excess inventories are worked through and carrier supply softens.
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
The company expects Adjusted EPS for full-year 2023 to range from $4.05 to $4.25, based on current market conditions and management's expectations.
Positive Outlook
- Truckload tractor count stable with miles per tractor improving on a year-over-year basis in the 2nd half of the year
- LTL revenue increases modestly year-over-year with relatively stable margin profile and typical seasonality
- Logistics revenue per load and load volumes down from the fourth quarter to the first quarter and then improving on a sequential basis for the rest of the year
- Easing inflationary pressure on costs
- Continued growth in revenue and operating income in non-reportable
Challenges Ahead
- Truckload rates continue to be pressured with year-over-year decreases in the mid-to-high single digits before inflecting positive in the fourth quarter
- Logistics operating ratio in the high 80's to low 90's
- Intermodal Operating Ratio in the mid 90's for the full year
- Equipment gains to be in the range of $10M to $15M quarterly
- Sequential increase in interest expense due to higher rates
Revenue & Expenses
Visualization of income flow from segment revenue to net income