Knight Transportation Earnings: Here’s Why Investors are Happy Now

Knight Transportation Inc. (NYSE:KNX) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1%.

Knight Transportation Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $0.24 in the quarter as EPS of $0.24 in the year-earlier quarter.

Revenue: Rose 3.61% to $244.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Knight Transportation Inc. reported adjusted EPS income of $0.24 per share. By that measure, the company met the mean analyst estimate of $0.24. It missed the average revenue estimate of $251.61 million.

Quoting Management: Kevin Knight, Chairman and Chief Executive Officer, commented, “We have continued to expand our market share in our wide range of truckload logistic services in a challenging operating and economic environment. Our consolidated revenue, before trucking fuel surcharge, increased 6.0% on a year over year basis. Our non-asset service offerings lead the way with revenue growth of 64.2%, and now make up approximately 20.0% of our total revenue before trucking fuel surcharge. Compared to the same quarter last year, our revenue per loaded mile, net of fuel surcharge, increased just less than 1.0% while our length of haul and miles per tractor were virtually flat. We experienced an improvement in our revenue per tractor compared to the same quarter last year, while operating income was essentially unchanged.”

Key Stats (on next page)…

Revenue increased 3.99% from $235.4 million in the previous quarter. EPS increased 26.32% from $0.19 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.24 and has not changed. For the current year, the average estimate has moved up from a profit of $0.92 to a profit of $0.93 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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