Trucking analysts are lowering expectations for the second half of the year ahead of the third-quarter earnings season, citing uncertainty due to tariffs and low visibility. Shipper uncertainty and subseasonal demand in August have impacted the industry.

Morgan Stanley analyst Ravi Shanker reduced earnings-per-share estimates for most truckload and less-than-truckload carriers he covers by low- to high-teen percentages due to trade noise and tariff uncertainty.

Shanker noted that third-quarter reports and commentary from management teams will provide insight into trucking’s peak season, with TL carriers more optimistic than LTL carriers.

Weakness across the industrial complex continues, with manufacturing data disappointing in September, keeping the Purchasing Managers’ Index in negative territory for 33 of the past 35 months.

Third-quarter earnings forecasts for TL carriers were reduced by 10% on average, with Knight-Swift Transportation possibly seeing its best peak in years if late project business materializes.

Tonnage across the industry remains negative, with LTL carriers facing soft demand and cost inflation, impacting their margin outlooks.

Susquehanna Financial Group’s transportation analyst also trimmed back-half TL numbers last month due to softness in volumes, spot rates, and tender rejections.

The third-quarter earnings season begins on Oct. 15 when J.B. Hunt Transport Services reports after the market closes.

Read more at Yahoo Finance: Morgan Stanley cuts TL, LTL earnings outlook