Why Saia Stock Drove Off the Road Today
Trucking company (NASDAQ: SAIA) fell short of expectations in the second quarter, weighed down by expansion costs. Investors were caught off guard, sending shares of Saia down 18% as of 11:30 a.m. ET.
Saia is one of the nation's largest less-than-truckload (LTL) trucking companies, a portion of the market focused on hauling loads for multiple customers on a single truck. The company earned $3.83 per share in the second quarter on revenue of $823.2 million, falling short of Wall Street's consensus estimate for $4 per share on sales of $827 million.
It has been a tough period for trucking companies, as fears about the economy have depressed inventories and softened demand for transport services. But Saia's results mostly point to an improving environment: Revenue was up 18.5% year over year, shipments per workday increased by 18.1%, and operating income improved by 14.4%.
Source Fool.com
