Shares of freight transportation company Knight-Swift Transportation Holdings (NYSE:KNX) soared in pre-market trading after the company reported earnings for its third quarter of Fiscal Year 2023. Adjusted earnings came in at $0.41 per share versus the $1.27 in the same period last year. Nevertheless, this beat analysts’ consensus estimate of $0.35 per share.
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Revenues in the third quarter increased by 6.5% year-over-year to $2 billion, again surpassing consensus estimates of $1.89 billion.
Looking forward, management now expects FY23 adjusted earnings to be in the range of $2.10 to $2.20 per share, as it expects truckload rates to stabilize at current levels in Q4. When it comes to less-than-truckload (LTL) revenues, excluding fuel surcharge, Knight-Swift has forecast these revenues to rise in the mid-teens in Q4.
Is KNX a Good Stock?
Overall, analysts are cautiously optimistic about KNX stock, with a Moderate Buy consensus rating based on seven Buys and two Holds and Sells each. The average KNX price target is $57, implying an upside potential of 24.2% from current levels.
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