PHOENIX - Knight-Swift Transportation Holdings Inc. (NYSE: KNX), a major North American freight transportation provider, has declared a quarterly cash dividend of $0.16 per share. The dividend is in line with the company's established cash dividend policy and reflects the board of directors' review of the company's financial performance.
Stockholders of record as of September 6, 2024, will be eligible for the dividend, which is scheduled for payment on September 23, 2024. This announcement is a continuation of Knight-Swift's practice of returning value to its shareholders through regular dividends.
As one of the largest and most diversified freight transportation companies in North America, Knight-Swift operates a comprehensive network of business units and terminals across the United States and Mexico. The company's services span multiple truckload transportation and logistics offerings, including less-than-truckload (LTL) services.
Knight-Swift's operations include not only the country's largest tractor fleet but also partnerships with third-party equipment providers to deliver a wide range of truckload services.
The information provided is based on a press release statement from Knight-Swift Transportation Holdings Inc.
In other recent news, Knight-Swift Transportation disclosed mixed results in their Q2 2024 earnings call. The company's revenue, excluding fuel surcharges, saw a significant 18.1% increase due to the acquisition of U.S. Xpress. However, the adjusted operating income experienced a 22.8% decline. The GAAP earnings per share (EPS) stood at $0.13, while the adjusted EPS was $0.24.
Knight-Swift's various segments showed diverse performance. The Truckload segment is stabilizing, and there are plans to open 20 new terminals in the LTL segment by year-end. The Logistics segment reported soft volumes, and the Intermodal segment anticipates modest profitability in Q4. The company's All Other Segments reported an operating profit for the first time in seven quarters.
Looking ahead, Knight-Swift projects Q3 and Q4 adjusted EPS guidance between $0.31 to $0.35 and $0.32 to $0.36, respectively. The company expects improved operating margins and revenue in the Truckload and LTL segments and anticipates load count growth in the Logistic and Intermodal segments.
These recent developments indicate Knight-Swift's strategic initiatives for expansion and improved profitability amid market challenges.
InvestingPro Insights
Knight-Swift Transportation Holdings Inc. (NYSE: KNX) has not only committed to its dividend policy but also shows a strong track record of financial performance. The company's dedication to shareholder returns is evidenced by its history of raising dividends, with an increase for four consecutive years and maintained payments for 21 consecutive years—an InvestingPro Tip that highlights the firm's consistency in rewarding its investors.
When examining the company's valuation, Knight-Swift is trading at a high earnings multiple, with a P/E Ratio of 125.58 and an adjusted P/E Ratio for the last twelve months as of Q2 2024 at 160.33. This could indicate that the market has high expectations for the company's future earnings growth. Additionally, the company's revenue has seen an increase of 11.57% over the last twelve months as of Q2 2024, which may support the market's optimistic valuation.
Investors should also be aware of the company's financial obligations; short-term liabilities exceed liquid assets, which is a point of consideration for those assessing the company's financial health. Nevertheless, analysts predict that Knight-Swift will be profitable this year, and it has indeed been profitable over the last twelve months, which is a positive sign for potential and current shareholders.
While the article focuses on the dividend announcement, these InvestingPro Data metrics and Tips provide a broader view of the company's financial performance and market valuation. For those interested in a deeper analysis, InvestingPro offers additional tips on Knight-Swift Transportation Holdings Inc., available at https://www.investing.com/pro/KNX.
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