Analyst Insights on Forward Air's Stock Price Plummet and Future Prospects

Tough conditions, even worse quarter

Forward is an asset-light provider of transportation services. In January, the company completed a deal for Omni Logistics over the objections of an activist investor who feared Forward was overpaying.

The latest results do not paint a good picture. Forward lost $0.64 per share in the quarter on $541.8 million, well below the $0.11-per-share loss on revenue of $604 million that Wall Street had expected.

Transportation companies by and large have had a disappointing earnings season due to soft demand trends and economic uncertainty from major customers. But Forward said that Omni's results were more adversely impacted as a result of that company's exposure to the international freight market.

Is Forward Air a buy after its post-earnings stock slide?

Forward is under new leadership. CEO Shawn Stewart was named to the post in late April following the departure of Tom Schmitt in the wake of the Omni deal. Stewart was not around for the decision to buy Omni, but he is determined to make the most of it.

Stewart has a good reputation in the industry, and he promised to provide an update on company strategy, and full-year 2024 guidance, as part of Forward's next earnings call.

Last fall, activist Ancora Holdings estimated that Forward could trade as high as $145 per share absent the Omni deal, and with better capital allocation and margin improvement. The company's shares trade at around $16 apiece today.

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