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Knight-Swift Transportation Holdings Inc. saw net income and revenue increase during the third quarter of 2020, the company reported Oct. 21.
The Phoenix-based truckload carrier posted net income of $122.1 million, or 71 cents a diluted share, for the three months ending Sept. 30. That compared with $74.6 million, or 44 cents a share, during the same time last year. Total revenue increased by 0.8% to $1.210 billion from $1.201 billion.
The results beat the expectations of Wall Street analysts, who had been looking for 63 cents per share and quarterly revenue of $1.16 billion, according to Zacks Consensus Estimate.
Knight-Swift Transportation Holdings noted that it expects the strong freight conditions to continue. That includes inventory restocking and demand that supports a favorable environment into 2021. The company also foresees low contract rate increases next year. But Knight-Swift also expects the challenge of sourcing and retaining drivers will continue.
The trucking segment reported that revenue excluding fuel surcharge and intersegment transactions increased by 3% over the year to $902.6 million from $876.4 million. Operating income increased 54.3% to $168.8 million from $109.4 million.
The logistics segment reported that revenue excluding intersegments transactions had increased by 15.1% year-over-year to $96.2 million from $83.6 million. The segment saw tightening capacity put pressure on margins. Load counts and margins strengthened through the quarter as well. Operating income for the segment decreased by 32.9% to $2.5 million from $3.7 million during the prior-year third quarter.
The intermodal segment reported that revenue excluding intersegments transactions had decreased by 9.1% to $98.8 million from $108.8 million the previous year. The report showed a 3.7% year-over-year decrease in average revenue per load, but when excluding the impacts of fuel surcharge, revenue per load increased 2.5%. There also was a 5.7% reduction in load counts from the prior-year quarter. Operating income for the segment decreased by 109.4% over the year to $250,000 from 2.7 million.
For the full year, Knight-Swift Transportation reported net income of $267.7 million, or $1.57 per diluted share, on revenue of $3.4 billion, compared with net income of $241.8 million, or $1.40 a share, on revenue of $3.6 billion in 2019.
Knight-Swift Transportation operates about 23,000 tractors, 77,000 trailers and employs 28,000 people. The company provides truckload and logistics services throughout the United States, Mexico and Canada.
Knight-Swift ranks No. 7 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
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