The Deal’s Lou Whiteman reports that truckers are sounding a word of caution about future growth, casting doubt on the strength of the overall economy. One can look to Knight Transportation (KNX) to play consolidator should a slowdown come. Phoenix-based Knight, like Swift Transportation (SWFT) and Werner Enterprises (WERN) before it, delivered solid results in the recently concluded third quarter but during its analyst call Wednesday joined its peers in warning that future results could come in slower than expected. Analysts are increasingly expecting weaker truckload pricing heading into 2016, and are adjusting expectations accordingly. ‘With U.S. jobs growth still positive and the consumer benefiting from lower gas prices, we along with others are a bit perplexed by the slower retail environment,’ Barclays analyst Brandon R. Oglenski wrote following the Knight results. ‘Nonetheless, [truckload] estimates appear to have further downside heading into 2016, which will clearly challenge stocks.’ Knight is likely to stay aggressive during the downturn. The $2 billion market cap company has not done a deal since its $112.5 million purchase of Barr-Nunn Transportation Inc. announced in October 2014, but the company made it clear that it is looking.
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