Unlock stock picks and a broker-level newsfeed that powers Wall Street.
Knight-Swift's (KNX) Q4 Earnings Beat, Increase 71% Y/Y

In This Article:

Knight-Swift Transportation Holdings Inc.’s KNX fourth-quarter 2021 earnings (excluding 9 cents from non-recurring items) of $1.61 per share surpassed the Zacks Consensus Estimate of $1.43. The bottom line surged 71.3% from the fourth-quarter 2020 figure, aided by higher revenues.

Total revenues of $1,816.9 million outperformed the Zacks Consensus Estimate of $1,720.5 million. The top line jumped 42.2% year over year, driven mainly by a massive increase in revenues at the Logistics segment.

Total operating expenses (on a reported basis) surged 36.1% year over year to $1.47 billion. This increase was mainly due to 50.5% escalation in fuel expenses as oil price moves north. Salaries, wages and benefits expenses climbed 35.5% year over year. Knight-Swift’s adjusted operating income rose 66% year over year.

KnightSwift Transportation Holdings Inc. Price, Consensus and EPS Surprise

KnightSwift Transportation Holdings Inc. Price, Consensus and EPS Surprise
KnightSwift Transportation Holdings Inc. Price, Consensus and EPS Surprise

KnightSwift Transportation Holdings Inc. price-consensus-eps-surprise-chart | KnightSwift Transportation Holdings Inc. Quote

Segmental Results

Revenues (excluding fuel surcharge and inter-segment transactions) in the Truckload segment totaled $992.69 million, up 5.5% year over year. Results were driven by an 8.5% increase in average revenue per tractor. Average revenue per tractor was strong in the quarter, owing to a 25.4% increase in revenue per loaded mile (excluding fuel surcharge and intersegment transactions). Adjusted segmental operating income rose 28.9% to $251.32 million. Adjusted operating ratio (operating expenses as a percentage of revenues) improved 460 basis points to 74.7%.

Revenues in the Logistics segment (excluding inter-segment transactions) amounted to $299.43 million, up more than 100% year over year owing to the 84% increase in load count and a 30.2% rise in revenue per load. Adjusted operating ratio improved to 84.9% in the fourth quarter from 91.2% in the year-ago period. Segmental adjusted operating income surged more than 300% to $45.19 million.

Revenues in the Intermodal segment (excluding inter-segment transactions) totaled $123.56 million, up 7.5% year over year. Persistent rail congestion and rail allocations induced a decline in load count but contributed to a 39.2% rise in revenue per load. Segmental operating ratio (on a reported basis) improved to 81.2% in the reported quarter from 94.8% in the year-ago quarter.

The Less-Than-Truckload (LTL) segment, which includes the results of AAA Cooper Transportation, a leading LTL carrier acquired by Knight-Swift in July 2021, generated revenues (excluding fuel surcharges) worth $177.9 million in the December quarter. The segment also includes the results of Midwest Motor Express, which was acquired in December 2021. Segmental operating ratio (on an adjusted basis) was 90.3%.