Forward Air – 10-Q Report Reveals Focus on LTL Network Growth

By Tamara Parker • Friday, August 09 15:15 • Permanent Link

Forward Air Corporation has recently released its 10-Q report, providing a detailed insight into its financial performance and operations. The company operates as an asset-light freight and logistics company in the United States and Canada, with two segments: Expedited Freight and Intermodal. The Expedited Freight segment offers less-than-truckload services, local pick-up and delivery, and other services, while the Intermodal segment provides intermodal container drayage services and contract and container freight station warehouse and handling services.

In the 10-Q report, the company's management discussion and analysis of financial condition and results of operations highlighted its focus on increasing density and revenue per pound within its existing LTL network. The report also emphasized the company's efforts to grow its LTL and Intermodal geographic footprint through greenfield start-ups and acquisitions.

The report outlined the key operating statistics used to manage the business and evaluate financial and operating performance. These statistics include tonnage, weight per shipment, revenue per hundredweight, revenue per shipment, and average length of haul. The company's primary revenue focus within the Intermodal segment is to increase the number of shipments.

Forward Air's report also addressed the impact of economic conditions on its business, noting that changes in economic conditions can significantly affect the demand for transportation services and exert pressure on rates and margins. The company highlighted the impact of international trade, governmental policies, and geopolitical developments on its business operations.

Additionally, the report discussed the company's dependence on diesel fuel supplies and the impact of fuel availability and prices on its operations. It highlighted the use of fuel surcharge programs to mitigate the impact of fluctuations in fuel prices.

Furthermore, the 10-Q report included details of recent events and factors affecting comparability, such as the completion of the Omni Acquisition, which contributed to changes in the company's results of operations for the three and six months ended June 30, 2024.

Today the company's shares have moved -2.5% to a price of $26.55. For the full picture, make sure to review Forward Air's 10-Q report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.