Forward Air (NASDAQ:FWRD) Issues Earnings Results, Misses Estimates By $6.18 EPS

Forward Air (NASDAQ:FWRD) issued its earnings results on Wednesday. The transportation company reported ($6.33) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.15) by ($6.18), Zacks reports. Forward Air had a negative return on equity of 41.21% and a negative net margin of 3.71%.The company had revenue of $673.04 million during the quarter, compared to analysts’ expectations of $634.37 million. During the same quarter in the prior year, the business posted ($0.41) EPS. The company’s revenue for the quarter was up 8.8% compared to the same quarter last year.

Here are the key takeaways from Forward Air’s conference call:

• Record quarterly revenue and improved profitability: Operating revenue reached a company-best $673 million, while consolidated EBITDA rose to $93 million from $79 million a year earlier. Adjusted EBITDA increased to $92 million, reflecting improved earnings quality.
• All operating segments showed improvement: Expedited Freight delivered its best results since early 2024, Omni Logistics posted an 11.2% EBITDA margin excluding impairment, and Intermodal achieved its best EBITDA in five quarters after strategic rate increases.
• Management completed the sale of two non-core Omni businesses for approximately $27 million and said the Intermodal divestiture remains on schedule to close by year-end, supporting portfolio simplification and potential deleveraging.
• Forward Air recorded a $244 million non-cash goodwill impairment tied to uncertainty over a major Omni customer’s future revenue, resulting in a reported second-quarter operating loss of $201 million despite $43 million of operating income excluding the charge.
• The company expects to retain at least half of approximately $250 million in 2025 revenue from its major customer, with potential to retain up to 75% and extend the contract by at least two years; however, some services are expected to transition to other providers beginning later this year and continuing through 2027.

Forward Air Stock Performance

FWRD traded up $0.11 during trading on Wednesday, hitting $15.41. The company’s stock had a trading volume of 692,033 shares, compared to its average volume of 745,193. The company has a quick ratio of 1.23, a current ratio of 1.23 and a debt-to-equity ratio of 13.98. Forward Air has a one year low of $7.86 and a one year high of $32.00. The firm has a market cap of $487.26 million, a PE ratio of -5.26 and a beta of 1.36. The business’s 50 day simple moving average is $13.27 and its 200-day simple moving average is $18.04.

Institutional Investors Weigh In On Forward Air

A number of hedge funds have recently modified their holdings of FWRD. Garton & Associates Financial Advisors LLC bought a new position in Forward Air in the 4th quarter worth $36,000. Tower Research Capital LLC TRC increased its position in Forward Air by 207.0% in the second quarter. Tower Research Capital LLC TRC now owns 2,600 shares of the transportation company’s stock worth $64,000 after buying an additional 1,753 shares in the last quarter. Kestra Advisory Services LLC bought a new position in shares of Forward Air in the fourth quarter worth about $74,000. Lazard Asset Management LLC bought a new position in shares of Forward Air in the second quarter worth about $107,000. Finally, Raymond James Financial Inc. purchased a new position in shares of Forward Air during the 2nd quarter valued at about $175,000. Institutional investors own 97.03% of the company’s stock.

Analyst Ratings Changes

FWRD has been the topic of several research analyst reports. Weiss Ratings reissued a “sell (e+)” rating on shares of Forward Air in a report on Friday, July 17th. Stifel Nicolaus set a $19.00 price objective on Forward Air in a report on Tuesday, July 21st. Zacks Research upgraded Forward Air from a “strong sell” rating to a “hold” rating in a research report on Tuesday, July 7th. Finally, Susquehanna lowered their target price on Forward Air from $42.00 to $18.00 and set a “positive” rating on the stock in a report on Friday, May 8th. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $18.50.

Forward Air Company Profile

Forward Air Corporation is a leading North American provider of expedited ground transportation and related logistics services, specializing in time-sensitive shipments. The company offers a comprehensive suite of solutions including less-than-truckload (LTL) expedited freight, consolidation and distribution services, container drayage, and final-mile delivery. By integrating transportation management with warehousing, inventory control, and technology-driven tracking, Forward Air supports customers across a variety of industries such as manufacturing, retail, automotive and chemicals.

Founded in 1981 and headquartered in Greeneville, Tennessee, Forward Air has developed a broad network of service centers, terminals and rail ramps throughout the United States, Canada and Puerto Rico.