Saia , Inc. (NASDAQ:SAIA)
Saia, Inc. (SAIA), a prominent player in the transportation sector, disclosed its financial results for the first quarter of 2024 today, revealing a shortfall in earnings and revenue against expectations. The company's diluted earnings per share (EPS) stood at $3.38, which was $0.07 below the consensus estimate of $3.45. Revenue for the quarter was reported at $754.8 million, falling short of the consensus estimate of $772.36 million.
Despite the earnings miss, Saia experienced a 14.3% increase in revenue compared to the first quarter of the previous year. The company's operating income also saw an 18.9% rise, reaching $117.9 million, and its operating ratio improved slightly to 84.4%. Saia's less-than-truckload (LTL) shipments per workday grew by 15.7%, and LTL tonnage per workday increased by 6.2%.
Saia's President and CEO, Fritz Holzgrefe, addressed the quarter's performance, attributing some of the operational challenges to winter weather. He noted that shipment growth was robust, but volumes towards the end of the quarter did not meet the company's expectations. Holzgrefe emphasized Saia's commitment to customer service and detailed the company's strategic investments, including terminal expansions and fleet modernization, which are part of a plan to spend over $400 million.
Following the earnings release, Saia's stock experienced a significant downturn, with shares dropping 13.45%. The market's response echoed concerns over the company's earnings and revenue miss, signaling investor disappointment.
Financially, Saia ended the quarter with $12.3 million in cash, a decrease from $166.4 million the previous year, and total debt increased to $84.1 million. The company's net capital expenditures surged to $456.8 million in the first three months of 2024, including a notable $235.7 million for property acquisitions from the Yellow Corporation auction. Saia anticipates net capital expenditures to reach approximately $1 billion for the full year of 2024, pending market condition assessments.
In addition to the financial results, Saia separately announced the upcoming retirement of Douglas Col, the Executive Vice President and Chief Financial Officer, after a decade with the company.
Despite the current quarter's earnings miss, Saia remains focused on its expansion and modernization initiatives, aiming to sustain its trajectory of improved financial performance and customer service excellence.