Knight-Swift (KNX) faces financial challenges with significant downward earnings revisions, leading to negative outlook.

From NASDAQ: 2024-07-05 13:06:00

Knight-Swift Transportation Holdings Inc. (KNX) faces challenges making it a less appealing investment. Earnings estimates have seen a significant downward revision, with a 47.2% drop for Q2 2024 and a 48.1% decrease for the full year. KNX has a Zacks Rank #4 and shares have fallen 13.2% this year.

Concerns about KNX’s financial performance continue as negative earnings expectations persist. The company is expected to see a 42.86% decline in Q2 2024 earnings year over year and a 26.74% decrease for the full year. KNX has a history of missing earnings estimates, with an average miss of 30.87%.

High operating costs are impacting Knight-Swift, especially related to driver wages, equipment, maintenance, and fuel expenses. First-quarter 2024 expenses jumped significantly, raising concerns about the company’s bottom-line growth. With total operating expenses up 20.8% year over year, KNX’s cash reserves are lower than its long-term debt.

Investors may want to consider alternative stocks in the Transportation sector like SkyWest, Inc. (SKYW) and Trinity Industries, Inc. (TRN). Both carry a Zacks Rank #2 (Buy) and show positive earnings growth expectations. SKYW’s earnings per share estimate has risen 6.9% in the last 90 days, while TRN raised its 2024 earnings guidance.

Trinity Industries, Inc. (TRN) updated its 2024 earnings per share guidance, while SKYW is showing promising growth potential. TRN shares have gained 10.7% this year, and positive revisions to earnings estimates indicate a favorable outlook. With opportunities for growth and improvement, both TRN and SKYW present compelling options for investors.



Read more at NASDAQ: Here’s Why You Should Give Knight-Swift (KNX) a Miss Now