Forward Air's Q3 revenue, EBITDA rise

By Reuters News


Overview

  • US logistics provider's Q3 operating revenue rose 6.7% yr/yr, a slight miss versus analyst expectations

  • Operating income nearly tripled from a year ago

  • Consolidated EBITDA rose 31% yr/yr


Outlook

  • Forward Air sees continued demand growth in contract logistics and air and ocean services


Result Drivers

  • EXPEDITED FREIGHT - Segment delivered highest operating revenue, income and EBITDA in nearly three years

  • OMNI LOGISTICS DEMAND - Increased demand for contract logistics and air and ocean services drove segment's Reported EBITDA margin improvement

  • DRAYAGE REVENUE - Higher drayage revenue per shipment led to Intermodal segment's highest revenue in over three years


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Operating Revenue

Slight Miss*

$673.86 mln

$677.35 mln (4 Analysts)

Q3 EBITDA

$101.47 mln

Q3 Free Cash Flow

$33.34 mln

Q3 Operating Margin

6.50%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the courier, postal, air freight & land-based logistics peer group is "buy"

  • Wall Street's median 12-month price target for Forward Air Corporation is $26.00, about 56.3% above its November 6 closing price of $16.64


Reuters Recommended Reads

  • Nov 9 - Logistics group CTP reaches $500 million deal to expand in Vietnam as clients seek China alternative


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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