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Knight-Swift says regulatory enforcement boosted truckload rates in Q2
The trucking company posted second-quarter adjusted EPS of 63 cents, above consensus, as contract rates rose through the quarter and its tender rejection rate ran twice the industry average.
Knight-Swift Transportation said regulatory authorities forced out non-compliant capacity during the second quarter, supporting what the company described as improving truckload market conditions. According to Yahoo Finance, Knight-Swift highlighted contract rates that climbed throughout the period and a tender rejection rate that was twice the industry average.
On results, the carrier reported second-quarter adjusted earnings per share of 63 cents, up 28 cents year over year and 12 cents above the consensus estimate. Management set its adjusted EPS guidance range at 45 to 49 cents.
Knight-Swift reported revenue of $2.1 billion, up 13% year over year and ahead of the $2.04 billion consensus estimate, with revenue up 6% year over year excluding fuel surcharges. Truckload revenue rose 3% year over year to $1.1 billion, while a 6% increase in revenue per tractor was partially offset by a 3% decline in average trucks in service.
The company also pointed to operational improvements, including enhanced load planning tools and higher revenue per loaded mile of $2.89, up 5.6% year over year excluding fuel. Management said it expects the positive momentum to intensify starting in September and continue through the rest of the year, with CEO Adam Miller arguing the regulatory shift is durable and can raise the floor for rates in the next downturn.