Forward Air (NASDAQ:FWRD) Shares Gap Up on Earnings Beat

Key Points

• Forward Air beat Q3 earnings expectations: EPS was $0.34 versus the $0.13 consensus, and the company swung to a profit from a $0.52-per-share loss a year earlier. Revenue of $673.9 million was roughly in line with forecasts.
• Operational challenges remain: Management cited 15%–18% excess network capacity, which may weigh on utilization and profitability, and paused the process to sell its intermodal business.
• Shares opened at $18.97 after a $17.65 previous close, but later traded at $16.94. Analysts’ consensus rating was “Moderate Buy,” with a $26.50 average price target.

Forward Air Corporation (NASDAQ:FWRD - Get Free Report)'s share price gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $17.65, but opened at $18.97. Forward Air shares last traded at $16.94, with a volume of 89,475 shares traded.

The transportation company reported $0.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.13 by $0.21. The firm had revenue of $673.86 million during the quarter, compared to the consensus estimate of $673.40 million. Forward Air had a negative return on equity of 19.49% and a negative net margin of 11.37%.

Key Headlines Impacting Forward Air

Here are the key news stories impacting Forward Air this week:

• Positive Sentiment: Forward Air earned $0.34 per share in Q3, beating analyst estimates, and swung to a profit from a $0.52-per-share loss a year earlier. Revenue of about $673.9 million was roughly in line with expectations. Zacks Q3 earnings report
• Negative Sentiment: Management indicated the network has 15%–18% excess capacity, which could weigh on utilization and profitability while the company works to align capacity with demand. Forward Air has also paused the intermodal sale process, leaving uncertainty around that strategic option. Report on excess capacity and intermodal sale process

Wall Street Analysts Forecast Growth

FWRD has been the topic of several research analyst reports. Zacks Research raised shares of Forward Air from a "hold" rating to a "strong-buy" rating in a research note on Thursday, October 29th. Weiss Ratings upgraded shares of Forward Air from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, September 8th. Stifel Nicolaus reaffirmed a "buy" rating and set a $28.00 price objective (up from $27.00) on shares of Forward Air in a report on Tuesday. Wall Street Zen raised Forward Air from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. Finally, Susquehanna decreased their price objective on Forward Air from $29.00 to $25.00 and set a "positive" rating on the stock in a research report on Friday, October 2nd. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Forward Air currently has a consensus rating of "Moderate Buy" and a consensus target price of $26.50.

Institutional Trading of Forward Air

A number of large investors have recently made changes to their positions in the company. Russell Investments Group Ltd. lifted its holdings in Forward Air by 304.4% during the third quarter. Russell Investments Group Ltd. now owns 37,884 shares of the transportation company's stock worth $578,000 after acquiring an additional 28,517 shares in the last quarter. Private Management Group Inc. increased its holdings in shares of Forward Air by 3.4% in the third quarter. Private Management Group Inc. now owns 1,184,883 shares of the transportation company's stock worth $18,069,000 after acquiring an additional 39,123 shares in the last quarter. Prescott Group Capital Management L.L.C. raised its position in shares of Forward Air by 138.7% during the third quarter. Prescott Group Capital Management L.L.C. now owns 295,726 shares of the transportation company's stock worth $4,510,000 after purchasing an additional 171,829 shares during the period. WINTON GROUP Ltd acquired a new stake in shares of Forward Air during the second quarter worth about $406,000. Finally, Engineers Gate Manager LP raised its position in shares of Forward Air by 68.8% during the second quarter. Engineers Gate Manager LP now owns 76,646 shares of the transportation company's stock worth $1,035,000 after purchasing an additional 31,241 shares during the period. Institutional investors own 97.03% of the company's stock.

Forward Air Price Performance

The company has a current ratio of 1.32, a quick ratio of 1.32 and a debt-to-equity ratio of 13.98. The firm has a market cap of $565.52 million, a P/E ratio of -1.90 and a beta of 1.31. The company has a fifty day moving average price of $16.06 and a two-hundred day moving average price of $17.43.

About Forward Air

Forward Air Corporation NASDAQ: FWRD is a transportation and logistics company that provides time-definite freight and supply chain services. Its offerings include expedited less-than-truckload transportation, truckload services, intermodal and drayage operations, final-mile delivery, and other logistics solutions designed for shipments requiring reliable transit times.

The company serves businesses across North America and supports domestic and international supply chains through a network of terminals, transportation partners, and logistics facilities.

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