Knight-Swift Q3 EPS Tops Estimates; Carrier Seeks Double-Digit Rate Hikes in New Bid Season

Knight-Swift Transportation (NYSE: KNX) reported third-quarter adjusted earnings per share of 83 cents Wednesday after the market closed, topping the 71-to-77-cent guidance range and the year-ago quarter by 51 cents. The carrier said it will seek "at least double-digit" rate increases as its new bid season begins next month, CEO Adam Miller said on a call with analysts. Revenue of $2.2 billion rose 14% year over year, slightly ahead of the $2.17 billion consensus estimate. The truckload unit posted a 6.5% year-over-year revenue increase excluding fuel, with revenue per tractor up 11% as the average tractor count fell 4%. The unit's 89.2% adjusted operating ratio improved 700 basis points year over year. The company guided fourth-quarter adjusted EPS of 78 to 84 cents, bracketing the 82-cent consensus. Knight-Swift said it has chosen several Northeast locations and plans to fill out its national less-than-truckload map organically at a deliberate pace.