SA: Knight-Swift jumps on 130% logistics revenue growth, guides revenue above consensus

20/10/2021

SEEKING ALPHA reports:

– Knight-Swift Transportation (KNX +3.8%) shares on the rise after the company posted a strong earnings beat as revenue grew 32.8% Y/Y, excluding fuel surcharges. Adjusted EPS were $1.30, beats by $0.23, a 64.6% from last year and up from $0.98 during Q2 2021.

– Trucking segment revenue, which made up 62% of total revenue vs 73% last quarter, grew 3.4%. Average revenue per tractor increased by 10.3%, driven by an 18.8% increase in revenue per loaded mile. Consumer demand remains strong but was offset by driver-related sourcing expenses, driver shortages, and constrained capacity.

– The logistics segment continues to see massive growth, up 130% Y/Y and 36% sequentially.

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The shares closed up 7.03% to $54.32 for the day.

The Form 8-K is here. Key figures:

– Truckload — 77.8% Adjusted Operating Ratio within our Truckload segment, a 350 basis point improvement as compared to the same quarter last year

– Logistics — 87.6% Adjusted Operating Ratio within our Logistics segment, a 980 basis point improvement, supported by a 130.0% increase in Logistics revenue, excluding intersegment transactions, as load counts grew by 60.7%, while revenue per load increased 43.1%.

– Intermodal — 91.5% Adjusted Operating Ratio within our Intermodal segment, an 820 basis point improvement, supported by 14.1% year-over-year revenue growth

– Less-than-Truckload (“LTL”) — 87.5% Adjusted Operating Ratio, which represents the results of AAA Cooper Transportation (“ACT”). See discussion under “Recent Acquisition” below. On an annualized basis, the LTL segment represents approximately 12% of revenue within the four reportable segments.