Forward Air Corp (FWRD) Reports Q3 2023 Earnings: Net Income Drops by 82.2%
Forward Air Corp (NASDAQ:FWRD) reports Q3 2023 earnings with a net income of $9.28 million, a decrease of 82.2% from Q3 2022.
Operating revenue for the quarter stood at $413.45 million, marking an 18.9% decrease from the same period last year.
The company's LTL volumes showed strong momentum, but weak demand for intermodal and truckload brokerage services continued.
Forward Air Corp (NASDAQ:FWRD) declared a quarterly cash dividend of $0.24 per share of common stock.
On October 30, 2023, Forward Air Corp (NASDAQ:FWRD) released its financial results for Q3 2023. Despite strong momentum in Less-Than-Truckload (LTL) volumes, the company reported a significant decrease in net income and operating revenue compared to the same period last year.
Financial Performance
For the quarter ended September 30, 2023, Forward Air Corp (NASDAQ:FWRD) reported a net income of $9.28 million, marking an 82.2% decrease from $52.13 million in Q3 2022. The company's operating revenue stood at $413.45 million, an 18.9% decrease from $510.02 million in the same period last year. The operating margin was 3.7%, a significant drop from 14.1% in Q3 2022.
Business Highlights
Despite the overall decline, the company reported strong momentum in LTL volumes. Tom Schmitt, Chairman, President, and CEO of Forward Air Corp (NASDAQ:FWRD), commented on the results, saying,
Precision execution of our revenue growth strategies led to positive volume trends and improved freight quality metrics."
He also noted a 6% growth in pounds per day over the same period in the prior year and an 8% increase in weight per shipment.
However, the company continued to face weak demand for its intermodal and truckload brokerage services. Rebecca J. Garbrick, CFO, stated,
Market demand continues to be challenged for our intermodal and truckload brokerage services as both lines of business are navigating an extended weak freight environment."
This resulted in a 19% decline in revenues on a consolidated basis.
Dividend Announcement
On October 24, 2023, the Board of Directors declared a quarterly cash dividend of $0.24 per share of common stock. The dividend is payable to shareholders of record at the close of business on November 22, 2023, and is expected to be paid on December 7, 2023.
Looking Forward
For Q4 2023, Forward Air Corp (NASDAQ:FWRD) expects its year-over-year revenue to decline 7% to 17% and adjusted net income per diluted share in the range of $0.98 to $1.02. This compares to reported net income per diluted share of $1.60 and adjusted net income per diluted share of $1.65 in Q4 2022.
Explore the complete 8-K earnings release (here) from Forward Air Corp for further details.
This article first appeared on GuruFocus.
