Saia (NASDAQ:SAIA), Inc. has reported a steady Q3 2023 performance with diluted earnings per share remaining consistent at $3.67, identical to the same period in 2022. Despite a slight increase in the operating ratio from 82.4% to 83.4%, the company's revenue rose by 6.2% to reach $775.1 million, and operating income saw a marginal growth of 0.1% amounting to $128.4 million.
A significant factor contributing to Saia's performance this quarter was the shutdown of a large LTL (Less-Than-Truckload) competitor, which led to a substantial increase in volume for the company. This boosted LTL shipments and tonnage per workday by 12.2% and 6.7% respectively. Additionally, LTL revenue per hundredweight and per shipment, excluding fuel surcharge revenue, also saw an increase of 8.4% and 3%.
To manage the surge in volume, Saia expanded its workforce by over 1,000 new employees since the end of Q2 2023. The company managed to maintain high customer service levels while ensuring network fluidity despite the rapid expansion. However, this growth led to an almost 16% rise in salaries, wages, and benefits due to both employee growth and an average wage increase of 4.1%.
CEO Fritz Holzgrefe praised the team's focus on their "Customer First" value, the positive core pricing environment, and their emphasis on freight profile and margins as key factors contributing to their Q3 performance. He underscored that their commitment to quality service was supporting profitability initiatives.
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