Hansen, Mueller Industries director, sells $105,710 in stock
Investing.com - Knight Transportation (NYSE:KNX) maintained its Buy rating and $55 price target from Benchmark following third-quarter results that showed an underlying operating beat despite headline earnings falling short of expectations. According to InvestingPro data, the stock currently trades at $45.04, with analyst targets ranging from $42 to $67, suggesting potential upside. The company maintains a "FAIR" overall financial health score of 2.07 out of 3.
Knight reported adjusted earnings per share of $0.32, below the $0.37 FactSet consensus, primarily due to $11.2 million in loss contingency costs related to exiting the third-party carrier insurance business and $12 million in elevated insurance claims at U.S. Xpress. Management described these as abnormal expenses with a combined impact of approximately $0.10 per share. Despite these challenges, InvestingPro analysis shows the company has maintained dividend payments for 22 consecutive years and achieved revenues of $7.4 billion in the last twelve months.
The company’s truckload segment underperformed expectations while its less-than-truckload (LTL) business outperformed during the quarter. Knight’s fourth-quarter EPS guidance range of $0.34-$0.40 came in slightly below analyst estimates, with the midpoint falling under both Benchmark’s $0.38 projection and FactSet’s $0.39 consensus.
Freight demand remained below seasonal norms in the third quarter, though management noted more active customer engagement around peak-season projects than seen since 2021. Base demand has held steady through mid-October, albeit below typical seasonal levels, with Knight remaining cautiously optimistic while acknowledging uncertainty about recovery timing.
Looking forward, Knight highlighted multiple opportunities for the next market cycle, including tightening capacity from regulatory and financial attrition, along with structural cost improvements that position the company for margin expansion when market conditions strengthen. InvestingPro subscribers have access to over 10 additional exclusive insights about Knight Transportation, including detailed analysis of its financial health metrics and growth potential. Get the full picture with InvestingPro’s comprehensive research report, available along with 1,400+ other detailed company analyses.
In other recent news, Knight Transportation reported its third-quarter 2025 financial results, revealing a mixed performance. The company’s earnings per share (EPS) came in at $0.32, falling short of the forecasted $0.37, which represents a 13.51% negative surprise. However, revenue reached $1.93 billion, surpassing the anticipated $1.90 billion, marking a 2.4% year-over-year increase. The earnings miss was primarily attributed to elevated insurance costs, which reduced EPS by approximately $0.10. Despite the earnings shortfall, Evercore ISI raised its price target for Knight Transportation to $47 from $42, maintaining an "In Line" rating. Stifel also increased its price target to $52 from $45, while maintaining a Buy rating, citing strong operations. These developments reflect the company’s recent performance and analysts’ adjusted expectations.
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