Forward Air Corp. 2Q profit almost triples

GREENEVILLE, Tenn. — Forward Air Corp., which provides air freight services to cargo carriers and airlines, said on Thursday that its second-quarter net income nearly tripled to $7.9 million as shipping volumes and prices rose.

The results beat analyst expectations, as did its outlook for the third quarter. Its shares rose $1.20, or 4.2 percent, to close at $29.50.

The positive trends experienced in the first quarter have continued, and in some cases accelerated, during the second quarter,” said Chairman, President and CEO Bruce A. Campbell. “While our Solutions group suffered a small loss, which was largely attributable to unusually high health care expenses, we continued to make significant progress on our strategic initiatives. By the end of the quarter we had nearly completed the elimination of a large, unprofitable customer and have been able to replace most of the related revenue with new profitable business.”

The company reported net income of $7.9 million, or 27 cents per share, during the quarter that ended June 30. That was up from $2.8 million, or 10 cents per share, during the same period last year. Revenue rose about 23 percent to $122.1 million from $99.7 million a year earlier.

Analysts surveyed by Thomson Reuters were expecting a profit of 23 cents per share on revenue of $115.8 million.

For the third quarter, the company said it expects to earn 28 cents to 32 cents per share, with revenue rising 20 percent to 25 percent from the same period last year, when it reported revenue of $103.1 million.

Analysts are expecting a profit of 26 cents per share on revenue of $119.9 million, on average.

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