Saia (NASDAQ:SAIA) Issues Quarterly Earnings Results

Key Points

• Saia reported Q1 earnings of $1.86 EPS, beating estimates by $0.04, and posted a record first-quarter revenue of $806.2 million (+2.4% year-over-year) with shipments up about 1%.
• Profitability was squeezed by a ~30% diesel price spike in March that created an estimated $3.5 million margin headwind, widening the operating ratio to 91.7% and leaving diluted EPS flat year-over-year.
• Management is investing roughly $1.8 billion over 36 months to expand the national network (70 new facilities since 2017) and expects ~400–450 bps of operating-ratio improvement Q1→Q2 if seasonality holds; shares jumped to $448.82 on the news.

Saia (NASDAQ:SAIA - Get Free Report) issued its quarterly earnings results on Thursday. The transportation company reported $1.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.82 by $0.04, Briefing.com reports. Saia had a return on equity of 9.86% and a net margin of 7.89%.The firm had revenue of $806.23 million during the quarter, compared to analyst estimates of $784.06 million. During the same quarter in the previous year, the company posted $1.86 earnings per share. The company's revenue was up 2.4% compared to the same quarter last year.

Here are the key takeaways from Saia's conference call:

• Saia reported strong operational and service metrics in Q1, including a cargo claims ratio of 0.5%, record first-quarter miles between preventable accidents, improved hours between lost-time injuries, and productivity (touches) up ~2.5% year-over-year.
• Revenue was a Q1 record at $806.2 million (+2.4% year-over-year) with shipments up 1% for the quarter and contractual renewals of 6.7%, signaling improving customer traction and pricing momentum.
• Profitability was pressured by a rapid ~30% diesel price spike in March that created an estimated $3.5 million margin headwind due to weekly fuel-surcharge timing, and the operating ratio widened to 91.7% with diluted EPS flat at $1.86 year-over-year.
• Management highlighted continued heavy investment in the national network — roughly $1.8 billion over 36 months and 70 new facilities since 2017 — and expects material leverage as ramping terminals mature, targeting ~400–450 bps of OR improvement Q1→Q2 if seasonality holds.

Saia Stock Performance

Shares of SAIA stock traded up $26.78 on Thursday, reaching $448.82. The stock had a trading volume of 737,190 shares, compared to its average volume of 549,927. Saia has a 1 year low of $231.69 and a 1 year high of $454.88. The company has a 50 day simple moving average of $381.15 and a 200 day simple moving average of $345.50. The stock has a market cap of $11.97 billion, a P/E ratio of 47.15, a price-to-earnings-growth ratio of 2.39 and a beta of 2.04. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.64 and a current ratio of 1.64.

Insider Buying and Selling

In related news, CFO Matthew J. Batteh sold 1,110 shares of the company's stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $375.71, for a total value of $417,038.10. Following the completion of the transaction, the chief financial officer owned 5,360 shares of the company's stock, valued at approximately $2,013,805.60. This represents a 17.16% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, VP Raymond R. Ramu sold 5,226 shares of the firm's stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $387.95, for a total value of $2,027,426.70. Following the sale, the vice president directly owned 3,631 shares in the company, valued at approximately $1,408,646.45. This represents a 59.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 15,533 shares of company stock worth $6,015,055 in the last quarter. Company insiders own 0.30% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Price T Rowe Associates Inc. MD boosted its position in shares of Saia by 2.5% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 1,798,841 shares of the transportation company's stock valued at $587,358,000 after buying an additional 43,690 shares during the period. Viking Global Investors LP raised its stake in shares of Saia by 67.2% during the third quarter. Viking Global Investors LP now owns 1,383,888 shares of the transportation company's stock valued at $414,281,000 after acquiring an additional 556,229 shares in the last quarter. Invesco Ltd. raised its stake in Saia by 31.7% in the fourth quarter. Invesco Ltd. now owns 923,912 shares of the transportation company's stock worth $301,676,000 after buying an additional 222,494 shares in the last quarter. Wasatch Advisors LP raised its stake in Saia by 25.3% in the second quarter. Wasatch Advisors LP now owns 825,687 shares of the transportation company's stock worth $226,230,000 after buying an additional 166,486 shares in the last quarter. Finally, First Trust Advisors LP raised its stake in Saia by 33.0% in the fourth quarter. First Trust Advisors LP now owns 740,798 shares of the transportation company's stock worth $241,885,000 after buying an additional 183,669 shares in the last quarter.

Wall Street Analyst Weigh In

A number of research analysts have commented on SAIA shares. JPMorgan Chase & Co. upped their price target on Saia from $349.00 to $365.00 and gave the company an "overweight" rating in a research report on Monday, January 12th. Stifel Nicolaus upped their price target on Saia from $352.00 to $381.00 and gave the company a "hold" rating in a research report on Thursday, April 16th. Wall Street Zen lowered Saia from a "hold" rating to a "sell" rating in a research report on Sunday. UBS Group reiterated a "buy" rating and set a $493.00 target price on shares of Saia in a report on Wednesday, February 11th. Finally, Bank of America upped their target price on Saia from $413.00 to $429.00 and gave the stock a "neutral" rating in a report on Tuesday, March 3rd. Ten equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $392.32.

Saia Company Profile

Saia, Inc is a publicly traded transportation company specializing in less-than-truckload (LTL) freight services across North America. Headquartered in Johns Creek, Georgia, the company focuses on the efficient movement of time-sensitive freight for a diverse customer base that spans retail, manufacturing, automotive, and healthcare industries. By leveraging a network of terminals and service centers, Saia provides tailored solutions designed to optimize supply chain performance.

The company's core offerings include regional, interregional, and national LTL shipping, supported by volumetric LTL and port intermodal services.

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