Trucking service provider Forward Air Corp. (FWRD), Monday reported that fourth quarter profit declined by 32.8% from last year, reflecting the unprecedented decline in demand for airport-to-airport freight services. The company also provided earnings outlook for the first quarter, which failed to meet the analysts' expectations.
Net income for the fourth quarter was $8.3 million, down 32.8% from $12.4 million in the prior year quarter. Earnings per share decreased 32.6% to $0.29 from $0.43 in the previous year quarter. On average, 12 analysts polled by Thomson Reuters expected the company to earn $0.29 per share for the fourth quarter. Analysts' estimate typically excludes special items.
The Greeneville, Tennessee-based company's income from operations fell 30% to $14.0 million from $20.0 million in the fourth quarter of 2007.
Operating revenue for the fourth quarter increased 7.8% to $123.4 million from $114.5 million in the same quarter of last year. Five analysts had a consensus revenue estimate of $109.07 million for the fourth quarter.
Fourth quarter operating revenue for Forward Air Inc. dropped 2.1% to $101.4 million, while operating revenue for Forward Air Solutions Inc. jumped 104.5% to $22..5 million over last year.
For the full year 2008, net income was $42.5 million or $1.47 per share, down from $44.9 million or $1.50 per share in the previous year.
Annual operating revenue increased 20.8% to $474.4 million from $392.7 million in the preceding year.
Street expected the company to report earnings of $1.47 per share on revenue of $462.50 million for the year.
For the first quarter, Forward Air anticipates income of $0.10 to $0.15 per share. Analysts project earnings of $0.21 per share for the first quarter.
The company also expects first quarter revenue in Forward Air segment to decline between 10% and 15%, while revenue in Forward Air Solutions segment to double, primarily on the strength of its two 2008 acquisitions.
FWRD closed Monday's regular trading session at $21.85, down $1.02 or 4.46%. In the after-hours, the shares further lost 43 cents or 1.97%.
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