Knight-Swift (KNX) Extends Losses on 74% Profit Slump

We recently published 10 Stocks Slump Amid Wall Street Cheer; 2 Hit Rock Bottom. Knight-Swift Transportation Holdings Inc. (NYSE:KNX) is one of the worst performers on Thursday.

Knight-Swift extended its losing streak to a third straight session on Thursday as investor sentiment was dented by a 74.2 percent slump in attributable net income in the third quarter of the year.

During the period, Knight-Swift Transportation Holdings Inc. (NYSE:KNX) said net income fell to $7.86 million from $30.46 million, despite total revenues inching up by 2.7 percent to $1.93 billion from $1.88 billion year-on-year.

The current quarter included $34.8 million of impairment charges, a loss contingency amounting to $11.2 million related to the 2024 exit from the third-party carrier insurance business, and $12 million of higher insurance and claims costs at US Xpress, primarily driven by the settlement of two large 2023 US Xpress auto liability claims.

“While volumes have remained stable in our truckload business, the industry is still dealing with an oversupply of capacity that has been gradually exiting the market. We have remained focused on reducing our costs and providing a high level of service to position our brands to support our customers with one-way over-the-road capacity at scale while offering robust dedicated solutions,” said Knight-Swift Transportation Holdings Inc. (NYSE:KNX) CEO Adam Miller.

“The market balance between supply and demand has remained challenging to carriers, [but] we believe there are several potential catalysts that may accelerate the exit of capacity over the next few quarters,” he said, referring to the enforcement of English language proficiency requirement, and enhancement of qualifications and controls for the issuance and renewal of non-domiciled Commercial Driver’s Licenses, among others.

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Disclosure: None. This article is originally published at Insider Monkey.