Knight-Swift issues profit warning

© Edwardgerges

US-based trucking and logistics company Knight-Swift (KNX) said today that consolidated Q2 23 numbers “will be lower than previously expected”.

The decline in its operating performance “is largely driven by the full truckload market, where persistently soft demand has caused volumes and pricing to be under greater pressure than originally anticipated, while costs remain stable on a sequential basis”.

This dynamic is expected to drive an “estimated 1,100-1,200 basis point degradation in consolidated operating margins year-over-year for the quarter”.

“The company expects to update its annual earnings guidance to reflect the current operating conditions and outlook as well as the inclusion of U.S. Xpress for the back half of the year in conjunction with its scheduled earnings release and presentation on July 20, 2023,” it added.

Knight-Swift also noted it expects to update its 2023 guidance to reflect the current environment as well as the consolidation of US Xpress – a deal now formally closed – in H2 23 when its scheduled earnings release/presentation on 20 July is due.

(KNX was down -4.5% to $53.3 in late afternoon in a weak market stateside. It ended the session at $54.07, down -3.3% for the day. Market cap: $8.7bn.)