Knight-Swift Transportation lowered its second-quarter outlook on Wednesday and decided against issuing third-quarter guidance as “customers are grappling with a fluid trade policy situation,” resulting in delayed decision making for some while others “manage inventories more tightly.”
The Phoenix-based transportation and logistics provider beat first-quarter expectations, reporting adjusted earnings per share of 28 cents, 4 cents better than the consensus estimate and 16 cents higher year over year. However, analysts lowered earnings expectations for trucking companies as the quarter closed and threats around Liberation Day tariffs ramped.
Knight-Swift’s (NYSE: KNX) first-quarter result was below management’s guidance range of 29 to 33 cents and benefited from gains on equipment sales of $15.5 million, an $8.8 million y/y increase, or a 4-cent tailwind.
Table: Knight-Swift’s key performance indicators – Consolidated
CEO Adam Miller told analysts on a Wednesday call that the first quarter had positive momentum to start but faded as trade uncertainty increased in March. He said some customers importing from China have taken a wait-and-see approach while others canceled orders to avoid being caught on the wrong side of a rapidly changing tariff policy.