Monday, Forward Air Corp. (FWRD) reported a decline in profit for the second quarter, hurt by lower revenues linked to the challenging freight environment resulting from the global economic recession. Earnings, however, came in ahead of estimates by a penny.
Net income for the second quarter declined to $2.84 million or $0.10 per share from $12.10 million or $0.42 per share in the previous year.
On average, 10 analysts polled by Thomson Reuters expected the company to report earnings of $0.09 per share. Analysts' estimates typically exclude special items.
Total operating revenue for the quarter declined to $99.70 million from $121.56 million a year ago. Segment wise, Forward Air revenue declined to $83.3 million from $110.9 million. Forward Air Solutions revenue improved 46.5% to $16.7 million from $11.4 million.
Three analysts had a consensus revenue estimate of $105.68 million for the company.
"During the quarter, our yield was severely impacted by the intense pricing pressure which began for us near the end of the first quarter as well as a difficult prior year fuel surcharge comparison," said president and chief executive officer Bruce Campbell.
For the six months, net loss was $0.26 million or $0.01 per share, compared to an income of $22.11 million or $0.76 per share in the same period of the previous year. Total revenue declined to $196.31 million from $229.50 million.
Looking forward, the company expects earnings to be between $0.08 per share and $0.14 per share. Total revenue is expected to decline in the range of 15% to 20%, assuming no further material deterioration.
The analysts currently expects the company to report earnings of $0.17 per share for the third quarter. Estimated revenue for the third quarter is $112.78 million.
FWRD closed Monday's regular trading at $21.71, up $0.32 or 1.50%, on a volume of 0.22 million shares in the Nasdaq. In the after hours the stock is down $1.46 or 6.73%, trading at $20.25.
For comments and feedback: editorial@rttnews.com