trucking

Saia Shares Tumble on Cautious Full-Year Margin Guidance

Saia Inc.'s stock fell 12% Thursday after the less-than-truckload carrier tempered profit expectations despite beating second-quarter results. The Johns Creek, Georgia-based carrier now expects full-year margin improvement at the lower end of its 100 to 200 basis point guidance range. Second-quarter earnings per share reached $3, beating consensus by 12 cents. A lower tax rate (2-cent tailwind) and reduced interest expense (8-cent tailwind) drove most of the beat. Revenue climbed 17% year-over-year to $957 million, with both tonnage and yield increasing 8%. However, management attributed margin pressures to new real estate investments exceeding $1 billion, as newly opened locations work toward profitability matching the existing network. Shipment counts and weights each rose 4% in the quarter.