Knight-Swift Transportation Holdings Inc (KNX) News & EventsKNXNews & EventsKnight-Swift Transportation Holdings Inc

Nasdaq Composite Declines as Tesla Earnings Weigh

Despite the third consecutive session of gains by Semiconductors, Nasdaq Composite was the worst performing major index, ending the day near session lows below the 25,700 level. Losses among key software names as well as new low in SpaceX, down another 7%, weighed on the tech-heavy index. In the benchmark S&P 500 Utilities was the best performing sector, followed closely by Basic Materials which benefited from a bounce in precious metal space. Communication Services was the worst performing sector as Google fell 1.5% and Meta declined nearly 3%.In the opening hour of the evening session, equity futures remain on the back foot as S&P 500 e-minis falls 0.3% and Nasdaq 100 contract is down by 0.5%. Sentiment is pressured by earnings reports from Tesla, which fell over 4% on Q2 earnings miss and reiterated expectations of climbing capital expenditures, as well as Alphabet, down 3% - where selling was similarly driven by higher capex forecasts. Also reporting results was IBM, though despite the cut in its revenue growth guidance, the stock is flat, having found support after the pre-announcement earlier this month that yielded a 25% selloff.In commodities, WTI crude oil remains bid near the $88 per barrel level, with tensions in the Middle East not showing any signs of letting up. Gold and silver traded higher for the third consecutive day, rising above $4,170 and $59 per ounce levels.Check out this evening's top movers from around Wall Street, compiled by The Fly.HIGHER AFTER EARNINGS -Medpace Holdingsup 18.3%United Rentalsup 8.7%Kaiser Aluminumup 5.6%ServiceNowup 5.1%CSX Corporationup 4.4%DOWN AFTER EARNINGS -Rollinsdown 15.5%Molina Healthcaredown 9.4%Las Vegas Sandsdown 5.4%Tesladown 4.6%Alphabetdown 3.4%Texas Instrumentsdown 3.1%Knight-Swift Transportationdown 1.5%AvalonBay Communitiesdown 1.4%IBMdown 0.4%

Knight-Swift Q2 Revenue Reaches $2.10B, Exceeds Expectations

Reports Q2 revenue $2.10B, consensus $2.04B. Consolidated operating income was $104.9 million, a 44.4% increase compared to the same quarter last year. Adjusted Operating Income was $151.0 million, a 45.5% increase year-over-year. The consolidated operating ratio for the quarter improved 110 basis points year-over-year to 95.0%, and the Adjusted Operating Ratio1 improved 240 basis points to 91.4%. Adam Miller, CEO of Knight-Swift, commented, "The second quarter saw a continued and rapid progression in truckload market conditions, with supply-driven tightening pushing spot rates, tender rejection rates, and contractual negotiations higher over the course of the quarter. We believe our business is positioned particularly well for environments such as this, with our leading over-the-road scale, agility in the market to optimize yield, collaborative cross-brand solutions to meet shippers' needs, an industry-leading academy network and training infrastructure to source professional drivers, and an intense cultural focus on cost and excellence in execution to convert opportunities into earnings. We believe demand for our truckload service offering is outpacing the market, as evidenced by our tender rejection rates running roughly twice the levels of public indicators in the second quarter. Realized revenue per mile was just beginning to recover in the second quarter, as contract rate improvement in the period was largely driven by bids priced early in the year, with more recent bids reflecting the tighter backdrop only starting to take effect late in the quarter. While our Truckload revenue and margin grew during the quarter, we anticipate meaningful opportunity ahead as the improvement in rate per loaded mile accelerated from low singledigits coming into the quarter to high single-digits in June. Our over-the-road business in particular posted doubledigit year-over-year improvement in rate for the month of June. In addition, disciplined network management amplified the margin opportunity as a reduction in empty miles produced even greater improvement in revenue per total mile. "Beyond the truckload market, the LTL market saw solid demand that is starting to trend up in certain areas along with indirect benefits from the tightening in the truckload market. We are encouraged by steady gains in rate renewals, ongoing improvements in freight mix, and progress driving network efficiencies. Our Logistics segment was impacted by the squeeze on gross margin that persisted through the second quarter as the cost of spot capacity continued to escalate faster than contractual pricing gains. Our Intermodal segment posted strong volume growth and early stages of pricing improvement. Combined with structural cost reductions and efficiency gains, these factors returned the business to profitability, and we intend to build on that momentum."

Company Issues Third Quarter Earnings Guidance

The company states: "In general, this guidance for the third quarter assumes current conditions continue with pressured capacity and stable demand and that we experience typical seasonal demand patterns in the truckload and LTL markets. Our expected Adjusted EPS1 range is based on the current truckload, LTL, and general market conditions, recent trends, and the current beliefs, assumptions, and expectations of management, as follows: Truckload * Truckload Segment revenue, excluding fuel surcharge, up mid single digit percent year-over-year with Adjusted Operating Ratio improving 650 - 750 basis points year-over-year in third quarter. LTL * LTL Segment revenue, excluding fuel surcharge, up low single digit percent year-over-year with Adjusted Operating Ratio in low 90's for third quarter. Logistics * Logistics Segment revenue and Adjusted Operating Ratio fairly stable sequentially in third quarter. 6 Intermodal * Intermodal Segment revenue up low single-digit percent sequentially with Adjusted Operating Ratio improving slightly sequentially in third quarter."