Saia lowered its full-year margin guidance to the lower end of a 100-200 basis points improvement range, weighing on shares despite strong Q2 results.
Saia’s stock fell 12% in midday trading Thursday after the less-than-truckload carrier tempered its third-quarter margin outlook, despite reporting better-than-expected second-quarter earnings. The company now expects full-year margin improvement at the lower end of its 100-200 basis points guidance range, citing ongoing profitability challenges at newer locations backed by $1 billion in recent real estate investments.
Second-quarter earnings per share reached $3.51, beating consensus by 12 cents and rising 84 cents year-over-year. Revenue climbed 17% to $957 million, in line with expectations, driven by 8% increases in both tonnage and yield. A lower tax rate and $3 million decline in net interest expense provided tailwinds.
The company reported record revenue, tonnage, and shipments for the quarter, but investors focused on the cautious margin outlook, overshadowing the strong operational performance.