Knight-Swift topped expectations with Q2 earnings of $0.63 on $2.096 billion in sales, and issued a Q3 adj EPS guide of $0.71–$0.77. Despite the beat, the stock dropped about 2.6% to $74.08 as investors weighed the guidance and the near-term path. Several analysts raised price targets, reinforcing a constructive view on KNX's earnings trajectory and growth prospects.
BofA downgraded KNX from Buy to Neutral, lowering the price forecast significantly. Earnings estimates for FY25 and FY26 cut by 17% and 11%, respectively. Truckload spot rates decline to $1.50/mile, indicating industry challenges. KNX to reduce its truckload fleet by 1.5% in Q1, exceeding prior expectations. Weather disruptions and tariff concerns impact freight flows and operations.
KNX revenue was $1.85 billion, up 18.9% year-over-year. EPS fell to $0.24, missing the consensus estimate. Adjusted Operating Ratios exceeded estimates but highlight operational challenges. Knight-Swift's performance ranked poorly with a Zacks #5 rating.
KNX earnings of $0.24 missed estimates by $0.03. Year-over-year earnings decreased from $0.49 to $0.24 per share. Revenue of $1.85 billion fell short of expectations by 1.89%. KNX underperformed the market, losing 14.2% this year. Zacks Rank indicates a 'Strong Sell' outlook for KNX.
KNX is ranked #5 (Strong Sell) due to lower earnings estimates. Earnings miss reported at $0.12 when $0.19 was expected. Annual estimates dropped from $1.26 to $1.21 over 60 days. Next year estimates fell from $2.87 to $2.81 in the same period. Negative revisions are common, placing many stocks at Strong Sell.