Truckload carrier Heartland Express' Q3 operating revenue falls more than expected

Heartland Express

Tue 14:09

Overview
U.S. truckload carrier's Q3 operating revenue fell and missed analyst expectations
Net income improved from loss last year
Company repurchased 183,371 shares and paid down $35 mln in acquisition-related debt

Outlook
Heartland Express expects 2026 net capital expenditures of $2 mln to $5 mln
Company anticipates $9 mln to $13 mln in total gains on disposal of property and equipment in 2026
Heartland Express plans to continue investing in fleet upgrades through positive cash flows

Result Drivers
FREIGHT VOLUMES AND PRICING - Co said improved operating results reflected stronger freight volumes and better customer pricing due to industry capacity reductions
RISING OPERATING COSTS - Co said operating expenses were significantly impacted by higher fuel costs and inflation in maintenance, repairs, and employee-related costs

Company press release: ID:nGNX7zfXtT

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Operating revenue
Miss
$179.5 mln
$188.37 mln (4 Analysts)
Q3 Net Income
 
$1 mln
$2.71 mln (2 Analysts)
Q3 Basic EPS
 
$0.01
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the ground freight & logistics peer group is "buy."
Wall Street's median 12-month price target for Heartland Express Inc is $12.50, about 18.7% above its October 19 closing price of $10.53
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 72 three months ago

Reuters Recommended Reads
Oct 19 - Truckload carrier Werner Enterprises sees Q3 revenue up to $951 million

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)