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Saia Shares Drop on Margin Guidance Pullback Despite Strong Q2

Saia Inc. shares fell 12% Thursday after the less-than-truckload carrier tempered expectations for full-year margin expansion. The Johns Creek, Georgia-based company reported second-quarter earnings per share of $3, beating consensus by 12 cents. The beat was driven partly by a lower tax rate and reduced net interest expense. Revenue climbed 17% year-over-year to $957 million, with tonnage and yield each rising 8%. However, management narrowed its full-year margin guidance to the lower end of a 100-to-200 basis point improvement range. The company attributed near-term headwinds to profitability at newly opened facilities following over $1 billion in real estate investments. Shipment counts and weights both increased 4% year-over-year, though yield declined 2% excluding fuel surcharges due to higher shipment weights and reduced length of haul.