By Investing.com — Saia, Inc., a less-than-truckload (LTL) transportation provider, reported third-quarter earnings that fell short of analyst expectations, despite revenue growth. The company’s shares dropped 2.5% following the announcement.
For the third quarter, Saia (NASDAQ:SAIA) posted adjusted earnings per share of $3.46, missing the analyst estimate of $3.54. Revenue came in at $842.1 million, slightly above the consensus estimate of $840.97 million and representing an 8.6% increase YoY. The company’s operating income decreased by 2.5% to $125.2 million, with the operating ratio deteriorating to 85.1% from 83.4% in the same quarter last year.
Saia President and CEO Fritz Holzgrefe commented on the quarter, stating, “We are pleased with the continued progress of our footprint expansion, as we opened 11 new terminals and relocated one terminal during the third quarter.” He added, “We are now able to provide direct service to all of the contiguous 48 states, which significantly enhances our value proposition to our customers.”
The company reported an 8.5% increase in LTL shipments per workday and a 7.7% rise in LTL tonnage per workday. LTL revenue per hundredweight, excluding fuel surcharge revenue, grew by 1.7%, while LTL revenue per shipment, excluding fuel surcharge revenue, increased by 0.9%.
Executive Vice President and CFO Matt Batteh noted, “The freight backdrop in the third quarter remained muted, and while weight per shipment was essentially flat compared to the second quarter, we continue to experience mix headwinds compared to prior year.”
Saia ended the quarter with $14.4 million in cash and $191.0 million in total debt. The company anticipates net capital expenditures of approximately $1 billion for 2024, subject to ongoing evaluation of market conditions.