Knight-Swift Transportation cut earnings expectations by 58% for the first half of the year on Wednesday, citing an oversupplied truck market, poor weather in January and a tough start to bid season.
The company said adjusted earnings per share for the first quarter will range between 11 and 12 cents compared to a 39-cent outlook (at the midpoint of the guidance range) provided in late January. It is calling for adjusted EPS of 26 to 30 cents in the second quarter versus the previous 55-cent expectation (at the midpoint of the range).
Knight-Swift’s (NYSE: KNX) new outlook for the first quarter includes an 8-cent-per-share loss associated with the shutdown of its third-party insurance business. That unit brokered liability coverage to small carriers. It struggled to collect premiums and endured unfavorable claims developments in recent quarters. In total, it lost $125 million last year, $72 million in the fourth quarter alone.
Shortly after the company announced it was shuttering the insurance business, CEO Dave Jackson stepped down.