Knight Transportation Inc (NYSE:KNX) lowered its full-year profit outlook, sending its shares 3% lower in after-hours Thursday.
The company reported Q2 EPS of $0.49 on revenue of $1.6 billion. Analysts were looking for a profit per share of $0.59 on revenue of $1.6B.
As a result, KNX lowered its full-year EPS outlook to a range of $2.1-2.3, a significant downward revision to the prior forecast for earnings of $3.35-3.55 per share. Analysts were expecting a profit per share of $2.68.
David Jackson, CEO of Knight-Swift, commented, "The absence of typical seasonal demand support reached its fourth consecutive quarter, with absolute demand falling to its lowest point yet for our truckload businesses in April before stabilizing at modestly better levels for the balance of the quarter. Logistics continues to navigate a very weak demand environment while maintaining a low 90's operating ratio despite being at the point of the cycle where purchased transportation costs seem to be finding a floor while contractual pricing continues to erode.”
“We will continue to take steps in pursuit of long-term opportunities, such as our acquisition of U.S. Xpress earlier this month. We are excited to now be fully working together to accomplish the significant goals we have laid out for this business. We have already begun to realize meaningful cost improvement and are positioning the business to benefit from an eventual rate rebound."