PHOENIX - Knight-Swift Transportation Holdings Inc. (NYSE:KNX) reported fourth quarter earnings that exceeded analyst expectations, sending its stock soaring 8.68% in after-hours trading Wednesday. The trucking company also provided an optimistic outlook for the first half of 2025.
Knight-Swift posted adjusted earnings per share of $0.36 for the fourth quarter, surpassing the analyst consensus of $0.34. However, revenue came in slightly below estimates at $1.86 billion, compared to expectations of $1.88 billion.
Looking ahead, the company provided upbeat guidance for the first two quarters of 2025. For the first quarter, Knight-Swift expects earnings per share between $0.29 and $0.33, with the midpoint above the $0.30 consensus. Second quarter guidance of $0.46 to $0.50 per share also topped analyst projections of $0.47.
Knight-Swift's truckload segment showed resilience, with its adjusted operating ratio improving 170 basis points YoY to 92.2%. The company's less-than-truckload (LTL) division saw revenues excluding fuel surcharge increase 20.2% YoY, though profitability was impacted by expansion costs.
CEO Adam Miller commented on the results, stating, "The fourth quarter showed the benefits of our diversified business model, as improvement in our truckload segment offset cost headwinds from the significant expansion in our LTL segment."
Miller added, "While current freight market conditions have been choppy, we are encouraged by customer sentiment, seasonal spot rate progression, the continued erosion of capacity, and early bid season activity - all of which point to a more balanced market than we have seen in roughly three years."
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