Latest news with #Knight-Swift
Yahoo
30-07-2025
- Business
- Yahoo
5 Revealing Analyst Questions From Knight-Swift Transportation's Q2 Earnings Call
Knight-Swift Transportation's second quarter results were driven by a combination of ongoing softness in freight demand and the company's response to volatile trade dynamics. Management attributed the stable revenue performance to a flexible over-the-road network, disciplined cost reductions, and margin improvement, particularly in the Truckload segment. CEO Adam Miller noted that while the anticipated surge in import-driven freight did not materialize, the company's ability to adapt its fleet and contain costs prevented a deeper revenue decline. The growing contribution from the U.S. Xpress brand and a steady expansion of the less-than-truckload (LTL) network also supported the quarter's results. Is now the time to buy KNX? Find out in our full research report (it's free). Knight-Swift Transportation (KNX) Q2 CY2025 Highlights: Revenue: $1.86 billion vs analyst estimates of $1.87 billion (flat year on year, in line) Adjusted EPS: $0.35 vs analyst estimates of $0.33 (5.1% beat) Adjusted EBITDA: $280.3 million vs analyst estimates of $281.1 million (15.1% margin, in line) Adjusted EPS guidance for Q3 CY2025 is $0.39 at the midpoint, above analyst estimates of $0.38 Operating Margin: 3.9%, in line with the same quarter last year Sales Volumes fell 2.9% year on year (38.8% in the same quarter last year) Market Capitalization: $7.03 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Our Top 5 Analyst Questions Knight-Swift Transportation's Q2 Earnings Call Chris Wetherbee (Wells Fargo) asked about supply-demand equilibrium and the impact of inventory overhangs. CEO Adam Miller noted ongoing capacity exit from the market, but said demand remains stable, making forecasting difficult in the near term. Daniel Imbro (Stephens) requested clarity on mid-cycle Truckload margins. Miller emphasized disciplined cost control and flexibility, expecting margins to normalize as demand improves. CFO Andrew Hess highlighted Knight-Swift's enhanced position for large-scale one-way service. Ken Hoexter (Bank of America) asked about LTL share gains and margin normalization. Miller explained that recent expansion and integration efforts have created cost headwinds, but ongoing initiatives aim to optimize the network and restore margins. Richa Harnain (Deutsche Bank) inquired about further cost savings in Truckload. Hess detailed the company's use of lean management, proactive safety practices, and technology to drive additional fixed and variable cost reductions. Ariel Rosa (Citigroup) questioned the impact of brokers and price transparency. Miller said digital tools and third-party data have increased market efficiency, accelerating cycles but not fundamentally altering Knight-Swift's margin potential. Catalysts in Upcoming Quarters Looking to the remainder of the year, the StockStory team will monitor (1) Knight-Swift's progress in realizing LTL margin improvement through technology and network optimization, (2) the pace of incremental cost savings from automation and cross-segment fleet management, and (3) signs of freight volume recovery or tightening capacity, especially in peak season discussions with customers. Execution in these areas will be critical for future earnings growth. Knight-Swift Transportation currently trades at $43.36, down from $45.66 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it's free). Our Favorite Stocks Right Now When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that's already erased most losses. Don't let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time Business News
20-06-2025
- Automotive
- Time Business News
Strategic AI Shifts Accelerate Transportation Growth
Artificial intelligence in transportation that has benefited all aspects of convenience, safety, and efficiency. Machine learning and artificial intelligence are increasingly implemented in several domains to achieve this end. Increased connectedness, more data availability, a growing vehicle-to-roadway ratio, and the need for efficient systems have fast-tracked the growth and so are companies in industries such as logistics, traffic control, and autonomous vehicles. The increase in linked vehicles and the mass of commuter data also boosts these factors, especially the use of AI systems in various modes of transport. Application areas of AI are traffic flow, maintenance requirements, and the easing of traffic congestion. Due to this, various businesses are adopting AI technologies to make transportation less complicated and time-consuming. Key Growth Drivers and Opportunities Technological Trends: As technological trends in AI Transportation include Autonomous freight and delivery, advanced driver assistance systems (ADAS), intelligent fleet management, AI-based predictive maintenance, and intelligent traffic systems on a huge scale. It is really about creating safer, more efficient, and sustainable means of transportation. Radar technology, drones, Location intelligence via aerial solution, and AI-powered sensors are at the forefront of transforming the transportation industry by enabling better vehicle navigation and delivery logistics. Challenges The AI in transportation sector is challenged by a number of obstacles. There are implementation costs, concerns over privacy issues with all the data required for AI, and absence of common regulation across jurisdictions. Tasking AI to be integrated into existing systems attempts to determine how long it will take for legacy systems to adopt. Also, there is a shortage of skilled workers, and one has to worry about whether the computer could be biased, or fail when safety is a concern. All this leads to low levels of trust and acceptance in AI based transportation solutions. Innovation and Expansion Knight-Swift Accelerates Safety with Netradyne's Vision-Powered AI In April 2025, the largest full truckload carrier in the industry, Knight-Swift Transportation Holdings Inc., has partnered with Netradyne, a leading software as a service (SaaS) provider of edge computing and artificial intelligence (AI), to equip 15,500 Knight and Swift trucks with Driveri D-450 and D-215 fleet safety dash cameras. Knight-Swift's D-450 and D-215 dash cam video footage will be converted by Netradyne into useful safety and efficiency insights. Through the analysis of all driving time, Driveri proactively improves safety by providing in-cab audio alerts in real-time, giving drivers self-coaching, accident warnings, and prompt advice on better choices. HERE Technologies Charts a New Course with AI-Driven Guidance for Smart Mobility In January 2025, the industry-leading provider of location data and technology, HERE Technologies, announced the HERE AI Assistant, its newest artificial intelligence (AI) product. This innovative system, which was created to meet the changing demands of the transportation and automotive sectors, uses many Generative AI Large Language Models (LLMs) to provide location-aware, natural language-powered assistance. Personalized journey planning is revolutionized by the HERE AI Assistant, which responds to sophisticated location-related inquiries with natural language prompts and delivers excellent, real-time responses. As the automobile industry develops software-defined, networked, electrified, and autonomous vehicle systems, the AI-powered capabilities are specifically designed for this sector. Delta's Intelligent Travel Revolution: One Ticket, Many Modes, Zero Hassle In January 2025, Delta launched 'multi-modal' transportation alternatives through its partners Uber and Joby, as well as Delta Concierge, an AI-powered digital tool that will add sophisticated features to its Fly Delta app starting in 2025 and beyond. Customers can travel with greater control and confidence due to Delta Concierge, which is integrated with the Fly Delta app. The experience streamlines a customer's trip by utilizing generative AI to provide smooth and customized moments. Fueling Growth: The Creative Spark Behind Market Expansion Among the major companies in the market are IBM, Daimler, Volvo, Paccar, Scania, Intel, and NVIDIA. With many companies concentrating on sustainable mobility and cutting-edge technology features that integrate with the automotive and transportation industries, the artificial intelligence in transportation market is extremely competitive. The target market's competitive environment is characterized by the existence of both established businesses and up-and-coming startups and niche players. With large expenditures from both automotive and technology businesses, the current market wave is strongly pushing toward the development and implementation of autonomous cars. About Author: Prophecy is a specialized market research, analytics, marketing and business strategy, and solutions company that offer strategic and tactical support to clients for making well-informed business decisions and to identify and achieve high value opportunities in the target business area. Also, we help our client to address business challenges and provide best possible solutions to overcome them and transform their business. TIME BUSINESS NEWS
Yahoo
20-05-2025
- Business
- Yahoo
Here's Why Investors Should Give Knight-Swift Stock a Miss Now
Knight-Swift Transportation Holdings Inc. KNX is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option. Let us delve deeper. Southward Earnings Estimate Revision: The Zacks Consensus Estimate for second-quarter 2025 earnings has moved 33.9% south in the past 90 days. For the current year, the consensus mark for earnings has been revised 27.5% downward in the same time frame. The unfavorable estimate revisions indicate brokers' lack of confidence in the stock. Dim Price Performance: The company's price trend reveals that its shares have lost 14.4% so far this year compared with the transportation-truck industry's 8.8% decline. Image Source: Zacks Investment Research Weak Zacks Rank and Style Score:KNX currently carries a Zacks Rank #5 (Strong Sell). The company's current Value Score of D further shows its unattractiveness. Other Headwinds:KNX has reduced its second-quarter 2025 adjusted earnings per share guidance to the range of 30-38 cents from the prior guided range of 46-50 cents per share. The Zacks Consensus Estimate of 35 cents lies within the updated guidance. The current macro-economic environment is leading to declining consumer sentiment and increasing uncertainty, which has led to the tempered outlook. High costs related to driver wages, equipment, maintenance, fuel and other expenses are restricting Knight-Swift's bottom-line growth. During first-quarter 2025, salaries, wages and benefits expenses rose 4.1% year over year. High costs naturally put pressure on margins. KNX's financial metrics indicate that its leverage is elevated and a massive negative for shareholders. The company's cash and equivalents are $209.48 million at the end of first-quarter 2025, which is lower than the long-term debt level of $1.41 billion. This implies that the company does not have enough cash to meet its debt obligations. The truck industry, of which Knight-Swift is an integral part, has been persistently battling a driver shortage for several years. As old drivers are retiring, trucking companies are finding it difficult to find new drivers to take their place since the low-esteem job mostly does not appeal to the younger generation. The industry to which KNX belongs currently has a Zacks Industry Rank of 243 (out of 248 groups). Such a weak rank places the industry in the bottom 1% of the Zacks industries. Studies have shown that 50% of a stock price movement is directly tied to the performance of the industry group that it hails from. In fact, a robust stock in a weak industry is likely to underperform an ordinary stock in a strong industry. Therefore, considering the industry's performance becomes imperative. Investors interested in the Transportation sector may also consider Copa Holdings CPA and Ryanair RYAAY. CPA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. CPA has an expected earnings growth rate of 13.1% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 5.5%. Shares of CPA have risen 16.5% year to date. RYAAY currently sports a Zacks Rank #1. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering an average beat of 44.5%. Shares of RYAAY have rallied 15.6% year to date. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report Knight-Swift Transportation Holdings Inc. (KNX) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
29-04-2025
- Automotive
- Yahoo
Trump EO Reinforces English Lanugage-Proficiency Requirement for Truckers
President Donald Trump signed an executive order Monday aimed at enforcing English-language proficiency for commercial motor drivers, including truck drivers. The EO reinforces an already existing federal law requiring holders of commercial driver's licenses (CDLs) to be English-proficient. In the order, Trump said the requirement should be a 'non-negotiable safety requirement for professional drivers.' More from Sourcing Journal Trump Says US Ships Should Travel Panama, Suez Canals for Free Tariffs Weigh on Trucking Giants Old Dominion, Knight-Swift and TFI Tariffs Take Their Toll on Trucking Specifically, 49 CFR section 391.11(b)(2) requires truck drivers to 'read and speak the English language sufficiently to converse with the general public, to understand highway traffic signs and signals in the English language, to respond to official inquiries, and to make entries on reports and records.' Truckers have argued that the lack of enforcement for CDL carriers to speak and read English poses safety risks on the road, especially if a driver doesn't understand an English sign or cannot communicate with other drivers or law enforcement. Under Trump's directive within the EO, 'drivers need to provide feedback to their employers and customers and receive related directions in English. This is common sense…this requirement has not been enforced in years, and America's roadways have become less safe.' The third section of the EO is expected to drive the changes. That section directs Transportation Secretary Sean Duffy to rescind an Obama-era 2016 Federal Motor Carrier Safety Administration (FMCSA) memorandum, which removed the requirement to place drivers out of service if they violated English proficiency standards. That memo also changed the agency's standard for determining non-compliance with the requirements. With the change, drivers could use interpreters, cue cards or smartphone apps to facilitate communications if they cannot communicate sufficiently with an inspector—and not be cited with a violation. The Department of Transportation will also review procedures for CDL authenticity verification as a part of the executive order. Additionally, it's designed to provide uniform enforcement by federal and state inspectors. Federal officials can set their own law enforcement standards for inspection, despite state officials taking up the lion's share of driver inspections. In 2024, federal officials conducted 72,485 inspections—less than 3 percent of 2.9 million total inspections. State inspections accounted for the remaining 2.8 million, per FMCSA data. The trucking industry is on board with the decision, with its biggest lobbyists having called for the reinforcement of the federal law. 'We thank the Trump administration for responding to our concerns on the uneven application of this existing regulation, and we look forward to working with FMCSA and the law enforcement community on an objective, consistent and effective enforcement standard,' said American Trucking Associations (ATA) senior vice president of regulatory and safety policy Dan Horvath, in a statement. The ATA had said it had received reports that the English-proficiency requirement is often 'misinterpreted and enforcement of this provision is inconsistent,' with the group saying it was likely due to a 2016 enforcement memo issued by FMCSA. In a letter sent April 10, Chris Spear, president and CEO of the ATA called on the FMCSA to immediately review its directives related to English proficiency enforcement, and ensure the provision should be 'enforced consistently during roadside inspections and on-site reviews.' The Owner-Operator Independent Drivers Association (OOIDA), which represents 150,000 truckers, also celebrated the executive order. 'Basic English skills are essential for reading critical road signs, understanding emergency instructions and interacting with law enforcement. Road signs save lives – but only when they're understood,' OOIDA president Todd Spencer said in a statement. 'That's why OOIDA petitioned the Commercial Vehicle Safety Alliance earlier this year to reinstate English proficiency as an out-of-service violation. Today's announcement is a welcome step toward restoring a commonsense safety standard.' Trump's executive order follows an earlier EO he signed on March 1, formally designating English as the official language of the U.S. As truckers applaud Trump's recent executive action, many are feeling the heat of the president's tariffs on foreign trade partners, namely China. Old Dominion, Knight-Swift and TFI International all reported hits to their businesses in their recent earnings calls amid slowing activity, with expectations for volume declines to continue as the tariffs remain in play. Expressing a similar sentiment in its earnings call, Saia saw stock collapse 30 percent Friday after first-quarter revenue came in below estimates. 'We're not really seeing anything in April that would tell us seasonality is back in check,' said Saia's chief financial officer, Matt Batteh, on the call. Volume has already started to slow down at major West Coast ports like Los Angeles and Long Beach, hurting truckers normally Volvo Trucks North America also said it would lay off as many as 980 employees across three facilities in the next few months. Private equity firm Apollo Global Management said in a presentation earlier this month that more layoffs are expected to hit the trucking and retail industries in late May-early June.
Yahoo
27-04-2025
- Business
- Yahoo
KNX Q1 Earnings Call: Flat Volumes, Cost Controls, and Guidance Cut Amid Trade Uncertainty
Freight delivery company Knight-Swift Transportation (NYSE:KNX) beat Wall Street's revenue expectations in Q1 CY2025, but sales were flat year on year at $1.82 billion. Its non-GAAP profit of $0.28 per share was 18.4% above analysts' consensus estimates. Is now the time to buy KNX? Find out in our full research report (it's free). Revenue: $1.82 billion vs analyst estimates of $1.8 billion (flat year on year, 1.6% beat) Adjusted EPS: $0.28 vs analyst estimates of $0.24 (18.4% beat) Adjusted EBITDA: $264.1 million vs analyst estimates of $261.9 million (14.5% margin, 0.8% beat) Adjusted EPS guidance for Q2 CY2025 is $0.34 at the midpoint, below analyst estimates of $0.40 Operating Margin: 3.7%, up from 1.1% in the same quarter last year Free Cash Flow was $69.99 million, up from -$104 million in the same quarter last year Sales Volumes fell 5.3% year on year (38.8% in the same quarter last year) Market Capitalization: $6.31 billion Knight-Swift Transportation's first quarter results reflected a market environment shaped by ongoing uncertainty around U.S. trade policy and shifting shipper behaviors. CEO Adam Miller noted that while early indicators in the quarter were positive, severe weather and growing caution among shippers—sparked by tariff discussions and food trade policy—contributed to lower than expected shipment volumes. Management highlighted that operational adjustments, such as tightening the equipment fleet and cost reductions, helped offset these headwinds and improve margins compared to the prior year. Looking ahead, the company adopted a notably cautious stance in its forward guidance, reflecting the unpredictability in freight demand tied to both consumer sentiment and potential trade policy changes. As Miller explained, "With all that being said, during April, market conditions have largely been stable with where we exited the first quarter, but there is a wide range of possible paths forward from here." Knight-Swift will only provide quarterly guidance for now, citing the risk of further volume declines if trade policy remains unsettled. Management attributed the quarter's performance to a mix of operational discipline, network diversification, and external market pressures. The following factors were central to business fundamentals this quarter: Truckload Segment Restructuring: The company reduced underutilized tractors and trailers, aiming to lower depreciation and boost utilization. This tightening of the equipment fleet, combined with moderate increases in contract rates, was cited as a key lever for margin improvement. LTL Network Expansion: The less-than-truckload (LTL) business continued to grow, with seven new facilities opened and daily shipments up 30% year over year in March. However, rapid volume growth led to higher short-term costs and operational inefficiencies, particularly in newly integrated regions. Cost Controls and Claims Management: Management emphasized ongoing efforts to control variable and fixed costs, including reductions in overhead, more efficient maintenance, and improved safety and claims handling. These initiatives supported the company's ability to lower cost per mile for a third consecutive quarter. Impact of Trade Policy Uncertainty: Shipper activity was mixed, with some customers pausing orders due to tariff concerns. Management reported that about one-third of customers were in "wait-and-see" mode, drawing down inventories rather than placing new orders, which negatively affected shipment volumes. Modest Pricing Environment: Despite a weak spot market, Knight-Swift achieved low to mid-single digit increases in contract rates during annual bid season. However, the expected momentum in rate increases did not materialize, and management warned that continued spot market weakness could limit realized revenue per mile in the near term. Management's outlook for the next several quarters centers on navigating continued freight demand uncertainty, with trade policy and shipper behavior as primary themes impacting guidance. Tariff and Trade Policy Risks: Management identified ongoing trade policy discussions and potential new tariffs as key risks. These could prompt further shipment delays, inventory drawdowns, and increased cost pressures for shippers, potentially leading to lower freight volumes. Operational Efficiency Initiatives: The company plans to further reduce costs through improved asset utilization, fleet optimization, and stricter overhead controls. Management expects these actions to help maintain margins even if top-line growth remains muted. Growth in LTL and Diversification: Knight-Swift continues to invest in expanding its LTL business, with additional facility openings planned. The company believes this segment, along with logistics and intermodal, will provide a more balanced revenue mix and help offset volatility in the core truckload market. Jonathan Chappell (Evercore ISI): Asked how management is balancing cost reductions with maintaining flexibility amid market uncertainty; Adam Miller explained that tractor and trailer reductions are targeted to avoid limiting capacity in the event of a demand upswing. Brian Ossenbeck (JPMorgan Chase): Inquired about progress in filling LTL network gaps and potential for further M&A Miller responded that organic growth remains the focus for 2025, with additional facility openings and continued integration of DHE. Ken Hoexter (Bank of America): Sought details on asset utilization and bid season dynamics; management stated that removing idle assets and focusing on core productivity should drive higher miles per tractor, while contract rate renewals are in the low to mid-single digits. Tom Wadewitz (UBS): Asked about the impact of a possible sharp decline in West Coast container imports; management acknowledged that reduced import volumes could negatively affect both truckload and intermodal segments, and their guidance range reflects this risk. Scott Group (Wolfe Research): Questioned assumptions in the earnings guidance and whether "power only" offerings would be scaled back; Miller stated that power only remains a complementary service and that guidance assumes limited seasonality, reflecting the current risk environment. In the coming quarters, the StockStory team will monitor (1) Knight-Swift's ability to drive further cost reductions and asset utilization gains, (2) developments in U.S. trade and tariff policy and their effects on shipper demand, and (3) progress in building density and operational efficiency within the expanding LTL network. Execution against these signposts will be key to determining how well the company adapts to ongoing volatility in freight markets. Knight-Swift Transportation currently trades at a forward P/E ratio of 19.8×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. 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