Knight-Swift Transportation beat lowered third-quarter expectations Thursday and said the market appears close to a tipping point.
The less-than-truckload unit saw a 7% y/y increase in revenue excluding fuel surcharges. Shipments per day increased 5% and revenue per shipment (excluding fuel) was up 10%. The OR slipped just 40 bps to 84.9%. Annual wage increases and incremental costs incurred taking on more freight were headwinds to the margin.
Management said “volumes built throughout the quarter” due to Yellow’s exit. Looking forward, it expects the unit to see a mid-teen y/y increase in revenue during the fourth quarter as shipments and yield grow by high-single digits.