Knight-Swift cuts Q2 adjusted EPS view to 26c-30c from 53c-57c

Consensus 48c. The company said, “The Company also expects that Adjusted EPS for the second quarter of 2024 will range from $0.26 to $0.30 (which is an update from the previously-announced expectation of $0.53 to $0.57). This updated range assumes the more challenging market conditions noted above continue, such as the bid season trends and less pronounced seasonality in the truckload market than originally projected and reflects: Truckload segment operating ratios in the mid-90’s for our existing businesses and continued roughly break-even operating results for U.S. Xpress with overall revenues stabilizing at declines of roughly 5% from the fourth quarter level due to headwinds on revenue per mile and on dedicated services; LTL segment operating ratio performing at similar levels as the second quarter of 2023 with year-over-year revenue growth of 10-15%; Logistics segment operating ratio in the mid-90’s with year-over-year revenue growth of 10 to 15%, as a result of the U.S. Xpress acquisition; Intermodal segment operating ratio approaching breakeven during the quarter with revenues down slightly year-over-year; and All Other segments operating income of approximately $10-15 million for the quarter before including the $11.7 million intangibles asset amortization. We plan to provide third quarter 2024 guidance in conjunction with the first quarter 2024 earnings release on April 24, 2024. Our Adjusted EPS ranges are based on the current freight market, recent trends, and the current beliefs, assumptions, and expectations of management.”