Knight-Swift Transportation stock dips after guidance cut By

Knight-Swift Transportation (KNX) saw its stock decline Wednesday following a downward revision of its earnings outlook for the first and second quarters of 2024.

The company’s stock is currently down 3%, trading above the $49 mark. However, it opened the session as low as $45.79 per share.

The company now expects adjusted EPS for Q1 2024 to range between $0.11 and $0.12, down from the previously announced $0.37 to $0.41. The range includes a loss of $0.08 per share for the third-party insurance business that ceased operation at the end of the quarter.

The guidance adjustment reflects challenges in the full truckload industry, including weather disruptions and pressure on freight rates during the bid season.

“In some cases, we have lost contractual volumes because we were not willing to commit to further concessions on what we view as unsustainable contractual rates,” said the company.

“This resulted in more of our capacity being allocated to the spot market, which creates further pressure on revenue per mile and utilization in the near term but positions capacity to react to changes in the market. The softer volume and pricing headwinds also impacted our Logistics volumes and margins.”

Looking ahead to Q2 2024, Knight-Swift forecasts adjusted EPS of $0.26 to $0.30, lower than the previous estimate of $0.53 to $0.57. These projections assume the ongoing market difficulties continue.

Despite these challenges, Knight-Swift remains focused on improving margins and expanding its footprint. Investors are awaiting KNX’s first-quarter earnings release on April 24, 2024.

Source link

Similar Articles



Please enter your comment!
Please enter your name here


Most Popular