Heartland Express books a 99.4% adjusted operating ratio in the second quarter. (Photo: Jim Allen/FreightWaves)
Heartland Express reported a net loss for the second quarter on Tuesday, pointing to weak freight demand, excess capacity and higher expenses as the culprits.
The North Liberty, Iowa-based truckload carrier reported a $3.5 million net loss, or 4 cents per share. That was slightly better than the consensus estimate for a 5-cent-per-share loss but well off earnings per share of 10 cents in the 2023 second quarter. Lower gains on the sale of used equipment presented a 7-cent hurdle (assuming a normalized tax rate) versus the year-ago quarter.
This was Heartland’s (NASDAQ: HTLD) fourth consecutive quarterly net loss when excluding one-time gains from the sale of real estate. It booked $25.6 million in gains from the sale of three terminals in the fourth quarter, which are viewed as nonrecurring benefits.
“Our consolidated operating results for the three and six months ended June 30, 2024, reflect the combination of an extended and significant period of weak freight demand, driven by excess capacity in the industry and ongoing operating cost inflation,” CEO Mike Gerdin said in a news release.