Knight-Swift cuts Q4 adj. EPS view to 62c-65c from 73c-77c, consensus 71c
The updates to the expected adjusted EPS ranges for Q3 and Q4 are a result of increased competition within the intermodal market, leading to unexpected reductions in volume and revenue per load, and greater than expected pressure on freight rates, primarily due to an oversupply of truckload capacity. The reduced revenues from these factors, as well as the cost of exiting certain underperforming dedicated business, resulted in lower than expected operating income. The company continues to expect a seasonal improvement in demand during Q4, however, less robust than originally projected. The company believes the rationalization of capacity has accelerated and should lead to a more favorable freight environment in the second half of 2020.