Why Freight Transportation Company Knight-Swift's Shares Are Surging Today

Knight-Swift Transportation Holdings Inc. KNX shares are trading higher by over 12% after it reported better-than-expected Q3 2023 earnings results.

Revenues stood at $2.02 billion, up 6.5% Y/Y, beating the consensus of $1.89 billion.

Revenue in the Truckload segment increased 21.9% Y/Y to $1.18 billion, LTL segment rose 6.9% Y/Y to $239.98 million, Logistics fell 24.5% Y/Y to $158.6 million, and Intermodal declined 22.6% Y/Y to $101.22 million.

Adjusted operating income was down 60.8% Y/Y to $109.50 million.

Adjusted EPS of $0.41 surpassed the street estimates of $0.36.

As of September 30, 2023, the company had unrestricted cash and available liquidity of $1.0 billion and $7.1 billion of stockholders' equity. 

Year-to-date, operating cash flow stood at $873.5 million. 

Outlook: The company tightened FY23 adj. EPS guidance to $2.10-$2.20 (from $2.10-$2.30) vs. $2.07 consensus.

KNX continues to expect net cash capital expenditures of $700 million – $750 million.

"The team at U.S. Xpress has made immediate improvement and continues to execute on cost and revenue opportunities while running ahead of the pace on our projected path to reach an operating profit in the first half of next year. Measurable progress is being made on implementing a decentralized operating model, improving pricing and freight selection, enhancing driver support and development, and capturing cost and revenue synergies, having already reached a $100 million annualized run rate of realized improvement," said David Jackson, CEO.

Price Action: KNX shares are up 12.1% at $51.43 premarket on the last check Friday.