Forward Air (NASDAQ:FWRD) Announces Earnings Results

Forward Air (NASDAQ:FWRD) announced its quarterly earnings data on Wednesday. The transportation company reported ($6.38) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.15) by ($6.23), FiscalAI reports. The company had revenue of $673.04 million for the quarter, compared to the consensus estimate of $634.37 million. Forward Air had a negative return on equity of 41.21% and a negative net margin of 3.71%.

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 Price Performance

Shares of FWRD stock traded up $0.11 on Wednesday, hitting $15.41. 691,993 shares of the company’s stock were exchanged, compared to its average volume of 972,413. The company has a debt-to-equity ratio of 13.98, a current ratio of 1.23 and a quick ratio of 1.23. Forward Air has a 12 month low of $7.86 and a 12 month high of $32.00. The stock has a market cap of $487.26 million, a P/E ratio of -5.26 and a beta of 1.36. The company has a 50 day moving average of $13.17 and a 200 day moving average of $18.14.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Garton & Associates Financial Advisors LLC acquired a new stake in shares of Forward Air in the 4th quarter valued at approximately $36,000. Tower Research Capital LLC TRC boosted 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 valued at $64,000 after buying an additional 1,753 shares in the last quarter. Kestra Advisory Services LLC bought a new stake in shares of Forward Air during the fourth quarter worth $74,000. Lazard Asset Management LLC bought a new stake in shares of Forward Air during the second quarter worth $107,000. Finally, Raymond James Financial Inc. acquired a new position in shares of Forward Air during the second quarter worth $175,000. Institutional investors and hedge funds own 97.03% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages have commented on FWRD. Zacks Research raised Forward Air from a “strong sell” rating to a “hold” rating in a report on Tuesday, July 7th. Susquehanna reduced their price target on Forward Air from $42.00 to $18.00 and set a “positive” rating on the stock in a research report on Friday, May 8th. Stifel Nicolaus set a $19.00 price objective on Forward Air in a research note on Tuesday, July 21st. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Forward Air in a research note on Friday, July 17th. Three analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Forward Air presently has an average rating of “Hold” and a consensus target price of $18.50.

About Forward Air

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.