Knight-Swift Stock Is Soaring. The Trucker’s Solid Earnings Aren’t Why.

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The company posted third-quarter earnings per share of 41 cents from sales of $2 billion. Wall Street was looking for 36 cents and $1.9 billion, respectively.

Shares of trucking firm Knight-Swift Transportation are soaring after earnings. The results, however, were good, not great. The reaction says more about the mood of investors than the trucking business or the economy.

It’s a solid quarter. Guidance was actually cut by a nickel. The EPS midpoint for 2023 is now $2.15 from $2.20. Still, the updated full-year guidance implies EPS of about 52 cents a share in the fourth quarter. Wall Street is modeling 47 cents.“Freight demand remains stable at low levels in the truckload market and relatively strong in the less-than-truckload market,” said CEO David Jackson in a news release.

It’s a great move for a good quarter. TD Cown analyst Jason Seidl called the quarter in line and wrote that fourth-quarter guidance was a little better than expectations, but didn’t change his Buy rating or $58 price target.

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