"I'm more excited about the supply chain enabler side of it, that's actually building some of that tech to help brokers get more efficient, help shippers get more efficient, and help carriers get more efficient."
Knight-Swift's Q3 2023 Earnings: Surprises, Challenges, and Outlook
Knight-Swift's Q3 2023 earnings report shows ups and downs, with revenue surpassing estimates but profits taking a hit.
Knight-Swift Transportation (KNX) shares jumped 11.75% after its earnings report on Friday. However, the company's overall numbers are a mixed bag.
- EPS sits at 41 cents, exceeding the 39-cent forecast.
- Revenues reached $2,019.9 million, surpassing the anticipated $1,915.4 million, a 21.9% increase YoY.
- EPS plummeted by 67.7% YoY.
- Operating expenses ballooned by 18.8% to $1.94 billion.
- Adjusted operating income experienced a 60.8% decrease.
- Truckload sector shined, with revenues climbing 21.9%, yet adjusted operating income sank by 65.8%.
- Less-Than-Truckload displayed promising revenue and operating income trends but with a marginal upswing in operating ratio.
- Logistics faced headwinds, registering a 24.5% decline in revenue and a significant 650 bps jump in operating ratio.
- Intermodal also grappled with challenges: revenues receded by 22.6%, and operating ratio surged to 104.5%.
CEO David Jackson discussed challenges in the truckload freight market and the potential for positive rate pressure, predicting a market turnaround. The company focuses on improving performance, growing the less-than-truckload business, and turning around U.S. Xpress Enterprises, its recent acquisition.