Knight-Swift Transportation: Outlook cut spells more gloom for sector

Covenant Logistics

17/07/2019 15:45

(Updates)
    ** U.S. truckload services provider's shares  KNX.N  fall as
much as 4.65% to $34.2, after cutting its outlook citing
oversupply in truckload capacity that is putting
"greater-than-expected" downward pressure on rev. per loaded
mile
    ** KNX's cut comes as U.S. railroad company CSX Corp  CSX.O 
on Tuesday posted lower-than-expected qtrly profit and cut its
FY revenue forecast after weakness in its trade-related
intermodal business  urn:newsml:reuters.com:*:nL2N24H1M5  urn:newsml:reuters.com:*:nL4N24I2CD
    ** KNX numbers serve as yet another negative freight data
point for investors, amid worries that a "freight recession" is
under way
    ** KNX expects Q2 adj. EPS of $0.57-$0.58 vs prior
$0.62-$0.64 and Q3 adj. EPS of $0.54-$0.57 vs $0.62-$0.66, with
the softer trucking backdrop expected to persist into H219
    ** KNX sees Q4 adj. EPS of $0.73-$0.77, lower than $0.78
expected by analysts on average, according to IBES data from
Refinitiv
    ** Dow Jones Transport Index  .DJT  down nearly 3% 
    ** Fellow truckers JB Hunt  JBHT.O , Covenant Transportation
 CVTI.O , Schneider National  SNDR.N , Werner Enterprises
 WERN.O  and YRC Worldwide  YRCW.O  fall 1%-3%
    ** KNX's EPS has missed Wall Street estimates in 7 of the
past 8 qtrs
    ** Up to Tuesday's close, KNX rose 43.2% this year,
outperforming a 15.8% increase in the S&P 1000 index  .SPMIDSM 

 (Reporting by Ankit Ajmera in Bengaluru)
 ((ankit.ajmera@thomsonreuters.com))