Saia's Q3 Results Exceed Expectations: Revenue Grows By 6% While Maintaining Profitability

Saia Inc (NASDAQ: SAIA) reported third-quarter FY23 revenue growth of 6.2% year-over-year to $775.1 million, beating the consensus of $745.98 million.

Diluted earnings per share for the quarter were $3.67 compared to $3.67 in the third quarter of 2022. 

The operating income improved slightly to $128.44 million from $128.36 million, and the margin contracted by 102 bps to 16.6%. The company reported an operating ratio of 83.4% compared to 82.4% in the third quarter of 2022.

Saia generated cash from operating activities for nine months ended Sept. 30, 2023, of $416.27 million, compared to $344.07 million a year ago.

LTL shipments per workday increased 12.2%, tonnage per workday increased 6.7%, and revenue per hundredweight increased 8.4%. LTL revenue per shipment rose by 3%.

Total debt was $18.9 million as of Sept. 30, 2023, and SAIA ended the quarter with $249.3 million of cash on hand.

“I am pleased with how third-quarter results came together, especially in light of the significant step-up in volume in late July resulting from the shutdown of a large LTL competitor. Our team worked some very long hours to handle a 10% increase in shipments per day compared to June levels while maintaining our high customer service levels. We have added more than 1,000 new employees since the end of the second quarter, and onboarding and training activities are ongoing,” commented President and CEO Fritz Holzgrefe.

The company stated that despite the significant increase in headcount and hours, total operating expenses grew by only 7.6%.

Price Action: SAIA shares are trading down by 6.19% at $353.75 Friday at publication.

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