Sterne Agee Lowering EPS And PO On Knight Transportation

According to Sterne Agee, Knight Transportation (NYSE: KNX) EPS and PO are lowered.

Sterne Agee said that, although the company disappointed its expectations for the second consecutive quarter on operating events, it decided to wait until other TL carriers had reported to assess the operating underperformance at KNX – particularly with respect to operating expense control. “Our verdict – it seems to be largely company specific. We are reducing our 2011 EPS by $0.08 to $0.83 and 2012 by $0.06 to $1.04 due to persistently slow top-line utilization improvement, pressure in the truck brokerage business, and an increasing trend of underperforming the TL universe. Our price objective declines from $25 to $23. Despite the disappointment, we remain positively oriented toward the shares.”

Knight Transportation closed Friday at $17.47.