Saia's stock experienced a sharp decline of 7.84% during pre-market trading on Tuesday, following the release of its fourth-quarter financial results.
The transportation company reported diluted earnings per share of $1.77 for the quarter, which fell short of analyst expectations. According to FactSet, the consensus estimate was $1.91 per share, while other analyst polls anticipated $1.92. This represents a significant decrease from the $2.84 per share reported in the same period last year.
While quarterly revenue of $790.0 million slightly exceeded estimates, operating income plummeted 36.9% to $64.0 million. The company attributed part of the profit decline to approximately $4.7 million in elevated self-insurance costs related to accidents from prior years, which management described as "unexpected adverse developments." The weaker-than-expected earnings performance appears to have driven the negative market reaction in pre-market trading.