Trump/Cook, Nissan weakness, more tariffs and gold - what’s moving markets
Investing.com -- Shares of Saia , Inc. (NASDAQ: NASDAQ:SAIA) fell sharply by 20% following the release of their first quarter financial results, which failed to meet analysts’ expectations. The transportation provider reported earnings per share (EPS) of $1.86, significantly below the consensus estimate of $2.77. Revenue for the quarter was also lower than anticipated, coming in at $787.6 million against the expected $810.04 million.
Comparing year-over-year (YoY) figures, Saia’s revenue saw a 4.3% increase from the first quarter of the previous year. However, operating income experienced a substantial decline of 40.5%, with an operating ratio that deteriorated from 84.4% to 91.1%, against an estimate of 87.7%. This ratio is a measure of operating expenses as a percentage of revenue, with a higher percentage indicating less efficiency.
Despite a 2.9% YoY growth in less-than-truckload (LTL) shipments, the total fell short of the 2.22 million shipments analysts had estimated. Saia’s President and CEO, Fritz Holzgrefe, attributed the disappointing results to a combination of factors, including an uncertain macroeconomic environment and unusually harsh winter weather, which hampered operations in some of the company’s key regions. Holzgrefe noted that while shipment growth was 4.6% for the quarter, revenues did not meet expectations, and the company’s operating income was adversely affected by lower revenues and increased labor and depreciation expenses.
Despite these challenges, Holzgrefe remained positive about the company’s ability to serve its customers through its nationwide terminal network. Executive Vice President and CFO, Matt Batteh, echoed this sentiment, expressing confidence in Saia’s financial resilience and customer service offering amid market uncertainty.
Investors reacted to these mixed results and the company’s outlook with concern, leading to the significant drop in Saia’s stock price during the trading session.