Overall, Saia’s first quarter results were impacted by a combination of market forces, tariffs, and operational challenges. The company’s growth following Yellow Corp.’s collapse has slowed due to customer hesitancy caused by the uncertainty of a trade war. The company also faced increased costs from carrying excess capacity in anticipation of a market turn, which did not materialize in March. This led to a significant miss in earnings per share compared to expectations.
Despite challenges, Saia reported a 4.3% increase in revenue year over year, driven by higher tonnage per day. However, revenue per hundredweight decreased, reflecting pricing challenges in the market. The company’s operating ratio of 91.1% was worse than expected, impacted by poor winter weather and operational inefficiencies at new terminals.
Management remains focused on increasing yields and improving margins, despite the current challenges. The company is working to close the revenue-per-shipment gap with peers and adjust pricing to reflect actual costs in newer markets. Overall, Saia is committed to maintaining its competitive position in the industry.
Investors will be watching closely to see how Saia navigates the current market environment and implements strategies to improve its financial performance in the coming quarters.
Perusahaan akan kembali menghadapi kenaikan biaya tahunan ini pada bulan Juli.
Biaya depresiasi naik 100 bps y/y, dan biaya transportasi yang dibeli naik 60 bps.
OR perusahaan sekitar 300 bps lebih buruk dari pola musiman normal (tidak termasuk cuaca) di kuartal pertama. Manajemen mengatakan tren tersebut telah berlanjut hingga April, dan kecuali terjadi infleksi dalam permintaan, kemungkinan tidak akan berubah. Oleh karena itu, target OR sebesar 89% untuk kuartal kedua, 570 bps lebih buruk y/y.
Perusahaan mengatakan tidak menerapkan langkah pengurangan biaya secara menyeluruh tetapi akan terus menyesuaikan tenaga kerja dengan volume. Pada awal bulan ini, perusahaan mengkonfirmasi kepada FreightWaves bahwa mereka telah melakukan pemutusan hubungan kerja terhadap tim layanan pelanggan mereka, memilih untuk memiliki terminal lokal menangani fungsi layanan tersebut.
“Saya mungkin akan menganggap Q1 sebagai hambatan atau penundaan, tetapi pada akhirnya, jangka panjang, nilai bisnis tetap … signifikan,” kata Presiden dan CEO Fritz Holzgrefe.
Artikel FreightWaves lainnya oleh Todd Maiden:
Pos Saia’s saham turun 30% karena tarif merusak permintaan, memperburuk masalah pertumbuhan muncul pertama kali di FreightWaves.