Trucking giant Knight-Swift beats on earnings, but cuts guidance due to a 'less robust' market
J. Pat Carter/AP
J. Pat Carter/AP
- Trucking company Knight-Swift rose 1% Wednesday morning after it reported adjusted earnings that beat estimates.
- The company, however, dropped guidance for the second quarter citing a "less robust" operating environment driven by weaker demand.
- Watch Knight-Swift trade live.
The trucking and logistics company Knight-Swift beat first quarter earnings expectations, sending the stock 1% higher early Wednesday.The company reported adjusted earnings of $0.55 a share, beating the $0.52 that analysts surveyed by Bloomberg were expecting. Revenue fell 5% to $1.2 billion, missing the $1.3 billion that analysts were hoping for.Advertisement
Knight-Swift also guided lower for its second-quarter adjusted earnings per share, saying it sees range of $0.62 to $0.64, down from $0.62 to $0.66.
"Overall, we are pleased that our ability to deploy assets effectively in a less robust market, together with enterprise wide efforts to improve our drivers' experience and safety, and a relentless focus on cost control, delivered strong first quarter results for our stockholders," noted the company's earnings release.Trucking stocks have been under pressure in recent months as lower demand and a drop in oil prices are starting to "take their toll on trucking-industry pricing power," according to Nicholas Colas, co-founder of DataTrek Research.
Rival JB Hunt also missed revenue expectations for the quarter, citing the Trump administration's tariff policy as a factor weakening demand.Knight-Swift was up 38% year to date.