US intermodal picking up steam as trucking woes continue
After a long trough of sluggish performance, US intermodal traffic is growing, and the market ...
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Knight-Swift reported a solid Q3 23 today after the US markets closed.
The conference call with analysts is about to start.
Adjusted quarterly EPS of $0.41 were 14%-ish ahead of expectations alongside sales that were materially better than expected.
The firm confirms its defensive portfolio of assets in a difficult market.
(Read our “How to defy doom and gloom” from earlier this year.)
The shares shot up +15% to over $52 ahead of the call with analysts in after-hours trade.
CEO David Jackson noted in his prepared remarks that “freight demand remains stable at low levels in the truckload market and relatively strong in the less-than-truckload market”.
Moreover: “Considerable truckload rate and cost pressure continue to mount as the truckload over-supply continues to rationalize and the industry approaches equilibrium. With truckload pricing resets now largely realized across our book of business combined with the recent climb in fuel prices serving as sequential headwinds to operating margins, our efforts to cut additional costs helped to improve the operating ratio slightly from the second quarter in our truckload business prior to the inclusion of U.S. Xpress.”
The full numbers can be found here.
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