Knight-Swift
Truckload carriers’ forecasts cut heading into Q1 prints
Analysts are cutting earnings estimates for truckload companies heading into first-quarter reports. Acknowledging decent demand, analysts cited an overhang of truck capacity, which is constraining pricing and margins, as the reason for the latest round of revisions.
“We exit 1Q much like we entered it for truckload-related transports — feeling okay about volumes but bad about pricing and expecting downward EPS revisions for businesses that live on this annual pricing cycle,” Susquehanna...
https://www.freightwaves.com/news/truckload-carriers-forecasts-cut-heading-into-q1-prints
Insurance woes weigh down Knight-Swift earnings
Insurance woes weigh down Knight-Swift earnings
Q4 earnings are in for Knight-Swift, which recorded a $71.7M operating loss from its third-party insurance business.
This might be a future business school case study on risk management. Back in 2021, Knight-Swift launched Iron Truck Services. The press release described it as “an organization that brings together services essential to transportation carriers and includes insurance, equipment maintenance, fuel purchasing,...
https://www.freightwaves.com/news/insurance-woes-weigh-down-knight-swift-earnings
2023’s most notable deals in trucking
Trucking M&A was tepid again in 2023 as freight demand slowed. Interest rates stepped higher, which proved a hindrance to deal financing, and tightened credit markets were met by still lofty valuation expectations from sellers.
Through the first week of December, transportation and logistics deal flow was off 2% year over year following 2022’s notable pullback, according to supply chain M&A advisory firm Left Lane Associates. However, companies generating significant cash flow did use M&A to...
https://www.freightwaves.com/news/2023s-most-notable-deals-in-trucking
Loaded and Rolling: ATRI finds congestion cost trucking $94.6B
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ATRI: Cost of congestion to trucking hits $94.6 billion
On Wednesday the American...
https://www.freightwaves.com/news/loaded-and-rolling-atri-finds-congestion-cost-trucking-94-6b
Knight-Swift sees inflection coming, beats lowered Q3 expectations
Management from Knight-Swift Transportation said Thursday that a tipping point for the truckload market is close.
“It feels like the extreme aggressiveness that we have seen out of non-asset-based players has reached a level to where it’s not only unsustainable, but when you add how expensive financing is … it blows up,” President and CEO Dave Jackson told analysts on a conference call.
The comments followed an announcement earlier in the day that financially distressed digital broker Convoy was...
https://www.freightwaves.com/news/knight-swift-sees-inflection-coming-q3-beats-lowered-expectations
7 years, 6 figures: Driver suit against Knight settled for small sum
A class-action lawsuit filed in November 2016 against what was then Knight Transportation has been settled for just $400,000, with a payout of less than $130 per plaintiff.
The lead plaintiff is driver Robert Martinez, but the class action brought in drivers who worked for Knight — now Knight-Swift — and lived in Oregon, Nevada, Arizona, Utah and Colorado but who drove for Knight in California from Sept. 30, 2012, until March 27 earlier this year, when the settlement was reached.
The case was...
https://www.freightwaves.com/news/7-years-6-figures-driver-suit-against-knight-settled-for-small-sum
Knight-Swift lays off employees after expressing market weakness
Knight-Swift Transportation, one of the largest trucking companies in the United States, is facing a tumultuous period marked by disappointing financial results and a bleak outlook for the year ahead.
As a response to these challenges, this week the company has conducted a series of layoffs affecting an undisclosed number of employees at the company, according to various sources.
These developments come on the heels of a second-quarter earnings miss and lowered full-year earnings guidance,...
https://www.freightwaves.com/news/knight-swift-lays-off-employees-after-expressing-market-weakness
Q2 likely ‘peak pain’ for trucking companies, Morgan Stanley says
Morgan Stanley trimmed estimates Thursday ahead of earnings season. The firm sees the second quarter of 2023 as the point of “peak pain” for trucking companies and likely the bottom of the cycle.
“The quarter began with most companies reporting on 1Q calls that there was virtually no spring seasonal pickup and while this improved somewhat going into the end of the quarter, the lift was likely too little, too late to save the quarter,” said Ravi Shanker, Morgan Stanley (NYSE: MS) transportation...
https://www.freightwaves.com/news/q2-likely-peak-pain-for-trucking-companies-morgan-stanley-says