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Dec 31, 2023
Knight-Swift Q4 2023 Earnings Report
Knight-Swift reported a net loss attributable to Knight-Swift of $10.7 million and Adjusted Net Income Attributable to Knight-Swift of $14.5 million for Q4 2023. The results included a $71.7 million operating loss in the third-party insurance business, which was initiated for exit during the quarter. U.S. Xpress achieved positive Adjusted Operating Income for the quarter.
Key Takeaways
Knight-Swift Transportation Holdings Inc. reported fourth quarter 2023 results, which included a net loss of $10.7 million and adjusted net income of $14.5 million. Consolidated total revenue was $1.9 billion, a 10.8% increase from the fourth quarter of 2022. The results were impacted by a $71.7 million operating loss in the third-party insurance business, which the company decided to exit. U.S. Xpress achieved positive Adjusted Operating Income for the quarter.
Consolidated total revenue increased by 10.8% year-over-year to $1.9 billion.
Net loss attributable to Knight-Swift was $10.7 million, with an Adjusted Net Income of $14.5 million.
The company experienced a $71.7 million operating loss in its third-party insurance business and decided to exit this market.
U.S. Xpress achieved positive Adjusted Operating Income for the quarter, though its inclusion negatively impacted the Truckload segment's Adjusted Operating Ratio by 250 basis points.
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 $0.37 to $0.41 for the first quarter of 2024 and from $0.53 to $0.57 for the second quarter of 2024.
Positive Outlook
- Truckload margin down slightly sequentially and improves in the second quarter.
- Truckload miles per tractor increase mid-single digit percent year-over-year in the first half.
- LTL shipment count improves mid-to-high single digit percent year-over-year and revenue per hundredweight, excluding fuel surcharge, improves mid-to-high single digit percent year-over-year.
- Intermodal volumes flat year-over-year in the first quarter before building high-single digit percent in the second quarter.
- Net interest expense stable sequentially with fourth quarter levels through the first half.
Challenges Ahead
- Given the unusual degree of uncertainty as to the direction and magnitude of outcomes from bid season.
- The timing and degree of an inflection in market conditions.
- The difficulty assessing prevailing levels of demand as a result of weather disruptions in January.
- Logistics volume declines high-single digit percent sequentially in the first quarter before partially recovering in the second quarter.
- Truckload tractor count down modestly sequentially through the first half.
Revenue & Expenses
Visualization of income flow from segment revenue to net income