Susquehanna Financial Group reduced earnings estimates for asset-based truckload carriers by mid-single- to low-double-digit percentages ahead of the third-quarter earnings season. Analyst Bascome Majors made similar reductions for the fourth quarter as volumes, spot rates, and tender rejections remain soft.
Third-quarter earnings-per-share estimates were cut by 12% and 11% for Schneider National (NYSE: SNDR) and Werner Enterprises (NASDAQ: WERN), respectively. Numbers were trimmed by just 6% for J.B. Hunt Transport Services (NASDAQ: JBHT) and 5% for Knight-Swift Transportation (NYSE: KNX).
Majors flagged the potential for mid- to high-single-digit declines in spot rates in the fourth quarter if subseasonal trends continue.
Fourth-quarter numbers were cut by high-single digits, with Werner seeing a 16% reduction. Flow through from the 2025 estimate revisions pulled down 2026 numbers between 9% and 17%.
Knight-Swift’s rating was cut to “neutral” on the lower EPS outlook. The valuation multiple was unchanged, resulting in a new share price target of $43 (down from $52).
The third-quarter TL earnings season begins on Oct. 15 when J.B. Hunt reports. 1. The stock market saw a significant drop today, with the Dow Jones Industrial Average falling by 500 points. This comes as investors worry about rising inflation and interest rates impacting corporate profits.
2. A new study revealed that over 50% of Americans are now fully vaccinated against COVID-19. This milestone is seen as a crucial step in reaching herd immunity and bringing an end to the pandemic.
3. The US economy added 559,000 jobs in May, exceeding expectations. The unemployment rate also dropped to 5.8%, showing signs of a strong recovery from the pandemic-induced recession.
4. Tesla announced plans to build a new Gigafactory in Texas, which is expected to create thousands of jobs in the area. The facility will produce batteries and electric vehicles to meet the growing demand for sustainable transportation solutions.
Read more at Yahoo Finance: Truckload earnings estimates cut heading into Q3 reports