In a record-setting quarter, Forward Air reported net income from continuing operations of $1.11 per share Thursday after market close, easily exceeding the consensus estimate of 96 cents and 78 cents higher than the second quarter of 2020.
The Greeneville, Tennessee-based asset-light trucking and logistics company [NASDAQ: FWRD] reported revenue of $420.7 million, a 49.3% year-over-year increase that also set a quarterly record for the company. Net income of $30.7 million — which compared with $9.2 million for the same period a year ago — was powered by the highest net income recorded by the company for the month of June.
“I am very encouraged that in our second quarter we are better than in pre-pandemic 2019’s second quarter: better consolidated operating margins now,” said Chairman, President and CEO Tom Schmitt. “And bigger — our operating revenues are up almost 40% year-over-year. Additionally, we are working to bring back our customers’ events business in late 2021 and 2022.”
Schmitt said the company’s focus on expedited freight and intermodal — its two “rock star” segments — drove second-quarter revenue, along with strong revenue management. He also noted that “surgical” partnering with customers on selecting, handling and pricing freight led to Forward Air’s highest operating income for any quarter in the company’s history.
“We are guiding to a record third quarter revenue and net income per diluted share despite the impact of an investment in operational enhancements and to a lesser extent the typical slowdown in volumes in the third quarter as compared to the second quarter.”
Expedited freight revenue increased 49.3% year-over-year to $351.7 million, with tonnage up 39.5% and revenue per hundredweight (excluding fuel surcharges) up 6.9%.
Intermodal revenue climbed 48.9% to $69.1 million, with drayage shipments increasing 40.3% year-over-year and revenue per shipment up 11.2%.
Schmitt said volumes so far in the third quarter are strong year-over year.
Commenting further on the upcoming quarter, CFO Rebecca Garbrick is forecasting year-over-year revenue growth at 28% to 32% and net income per diluted share of $1.03 to $1.07. That compares to 61 cents in the third quarter of 2020.