JOHNS CREEK, Ga. - Saia , Inc. (NASDAQ: NASDAQ:SAIA), a prominent player in the transportation sector, reported its financial outcomes for the second quarter of 2024, revealing a dip in earnings that missed analyst expectations. Following the earnings release, Saia's stock experienced a significant downturn, dropping by 12%.
The company's diluted earnings per share (EPS) for the quarter stood at $3.83, falling short of the analyst estimate of $4.00. Despite an 18.5% increase in revenue to $823.24 million, it was slightly below the consensus estimate of $826.58 million.
Saia's revenue showed a robust year-over-year (YoY) growth, reflecting an 18.5% increase compared to the second quarter of 2023. The company's operating income also grew by 14.4% to $137.6 million. However, the operating ratio worsened slightly from 82.7% to 83.3%. The less-than-truckload (LTL) shipments per workday and LTL tonnage per workday increased by 18.1% and 9.7%, respectively, while LTL revenue per hundredweight, excluding fuel surcharge revenue, rose by 8.7%.
President and CEO Fritz Holzgrefe highlighted the company's strategic expansions, noting the successful opening of six new terminals and the relocation of two others. He acknowledged the investments in employee hiring and training that preceded the revenue generation from these new facilities. Holzgrefe also mentioned the shift in the mix of business towards lighter, retail-oriented shipments and the impact of a softer macroeconomic environment on revenue per bill and operating ratio.
The company's financial position includes $11.2 million in cash on hand and a total debt of $176.7 million, marking a considerable shift from the previous year's $235.0 million in cash and $21.4 million in debt. Net capital expenditures for the first half of 2024 reached $681.3 million, a substantial increase from $226.5 million in the same period of 2023.
Despite the challenging conditions, Executive Vice President and CFO Matt Batteh expressed confidence in the ongoing execution of Saia's long-term growth strategy and the company's positioning for future investments.
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