Stablecoins are here to stay says BlackRock
GREENEVILLE, Tenn. - Forward Air Corporation (NASDAQ:FWRD), a prominent player in the transportation sector currently trading near its 52-week low of $10.32, has disclosed its preliminary financial results for the first quarter of 2025, which ended on March 31. The company estimates its Consolidated EBITDA to be in the range of $54 million to $59 million, following a challenging period where the stock has declined over 65% in the past year. According to InvestingPro analysis, the company appears undervalued at current levels. Additionally, Forward Air anticipates an increase in liquidity, expecting it to rise by about $10 million to $392 million, in comparison to $382 million at the end of the fourth quarter of 2024.
The company has also assessed the potential impact of new tariffs under the International Emergency Economic Powers Act (IEEPA), which were announced on April 2, 2025. The preliminary review suggests that 10% to 15% of the company's 2024 revenues, which totaled $2.47 billion last year, could have been affected by these tariffs, specifically from shipments under the company's direct control from the countries targeted by the tariff increases. InvestingPro data reveals the company operates with a significant debt burden, with a debt-to-equity ratio of 10.64, which could compound challenges from these tariff impacts. However, Forward Air has noted that it cannot estimate the impact on shipments handled prior to their transportation under the company's control, including those within its Intermodal segment.
Forward Air is scheduled to release its official first quarter 2025 earnings after the market closes on May 7, 2025, followed by a conference call at 4:30 p.m. ET to discuss the results.
The company's actual operating results are subject to the completion of its quarter-end closing process and could differ materially from the preliminary estimates provided. These results have not been audited or reviewed by the company's independent registered public accountants.
Forward Air is known for its asset-light transportation services across North America, offering a range of services including expedited less-than-truckload, truckload brokerage, intermodal, and warehousing, through its comprehensive network of terminals and through Omni Logistics for global multimodal solutions. Despite revenue growth of 80.5% in the last twelve months, InvestingPro analysis shows the company faces profitability challenges, with 14+ additional exclusive insights available to subscribers through the comprehensive Pro Research Report.
The information provided in this article is based on a press release statement from Forward Air Corporation.
In other recent news, Forward Air Corporation reported its fourth-quarter 2024 earnings, which revealed a significant miss on earnings per share (EPS) forecasts. The company posted an EPS of -$1.23, falling short of the anticipated -$0.12, while revenue reached $632.85 million, slightly below the expected $667.72 million. Despite the earnings miss, Forward Air achieved a robust 87% year-over-year revenue growth, driven by its acquisition of Omni Logistics and integration synergies. Fitch Ratings revised Forward Air's outlook to negative, citing increased risks in the expedited freight business, although it affirmed the company's Long-Term Issuer Default Ratings at 'B'.
Additionally, Forward Air's board is undergoing a refreshment, with the nomination of Paul Svindland, CEO of STG Logistics, to join the board. Benchmark analysts maintained a Hold rating on the company, acknowledging the challenges in the Expedited Less-Than-Truckload segment but noting improvements in Omni's adjusted EBITDA. Forward Air ended the quarter with $105 million in total cash and $277 million of available credit, resulting in total liquidity of $382 million. The company anticipates improvements in earnings quality in 2025, with expectations of volume and yield enhancements.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.