US trucking company plunges more than 20% after earnings disappoint and shipments flatlined in March
Saia is showing how hard it is to just keep on truckin’ in a world full of confusion over the outlook for cross-border commerce.
The US trucking company whiffed in the first quarter, with adjusted earnings per share of $1.86 falling far short of the expected $2.76 and revenues of $788 million that were also below what the Street had penciled in. Shares are tumbling more than 20% in early trading.
“Primarily resulting from an uncertain macroeconomic environment, we did not see the typical sequential growth in shipments through the quarter, with March shipments flat to February, causing our first quarter revenues to fall well below our expectations,” President and CEO Fritz Holzgrefe said, adding that severe weather also crimped activity in Q1.
“Saia’s volume and margins might be more susceptible to the demand backdrop now that the company has decelerated its expansion efforts,” Bloomberg Intelligence analysts Lee Klaskow and Aanchal Aich wrote. “Saia’s outlook this year will depend on how demand fares from here, especially given uncertainties surrounding tariff policies out of Washington, and how quickly management can bring its new terminals to peak performance.”
The analysts added that the ISM Manufacturing Index, which they say is a leading indicator for less-than-truckload demand, fell back below 50 (indicating contraction), a worrying signal for the outlook.
