Logistics services provider Forward Air Q3 revenue misses estimates
Forward Air's Q3 revenue fell 3.7% year-over-year, missing analyst estimates of $640 million with actual revenue at $631.76 million. The Omni segment saw a revenue increase to $340 million, supported by diversified services. Liquidity improved to $413 million due to strong cash flow from operations. The company did not provide future guidance. Analysts maintain a "buy" rating, with a median 12-month price target of $35.00, reflecting a potential upside of 48.2% from the recent closing price of $18.14.
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Overview
- Forward Air Q3 revenue declined 3.7% yr/yr, missing analyst expectations
- Omni segment revenue rose $5 mln to $340 mln, driven by diversified services
- Company’s liquidity improved to $413 mln, aided by strong cash from operations
Outlook
- Company did not provide specific guidance for future quarters or full year in its press release
Result Drivers
- OMNI SEGMENT - Strong performance with highest revenue and EBITDA since acquisition, driven by demand for diversified services
- EXPEDITED FREIGHT MARGINS - Stable margins with 11.5% EBITDA margin, second highest since Q4 2023, due to cost optimization and integration efforts
- LIQUIDITY IMPROVEMENT - Liquidity increased to $413 mln, supported by strong cash flow from operations
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q3 Miss $631.76 $640 mln
Operatin mln (5
g Analysts
Revenue )
Q3 EPS -$0.52
Q3 $77.68
EBITDA mln
Q3 Free $48.89
Cash mln
Flow
Q3 2.40%
Operatin
g Margin
Analyst Coverage
- The current average analyst rating on the shares is “buy” and the breakdown of recommendations is 3 “strong buy” or “buy”, 3 “hold” and no “sell” or “strong sell”
- The average consensus recommendation for the courier, postal, air freight & land-based logistics peer group is “buy”
- Wall Street’s median 12-month price target for Forward Air Corp (Delaware) is $35.00, about 48.2% above its November 4 closing price of $18.14
Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
