Why Forward Air Stock Had Some Serious Lift Today

Next-generation logistics specialist Forward Air (NASDAQ: FWRD) delivered mightily for its investors Wednesday.

On the back of an encouraging set of preliminary financial results and a business update, investors pushed the company's share price nearly 32% higher. That was more than good enough to beat the S&P 500 index's 9.5% rise.

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Sneak preview

The market liked what it heard from Forward Air regarding its financial performance. The company unveiled selected, preliminary first-quarter results indicating that its non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) figure will land at $54 million to $59 million.

It added that its "liquidity" (defined as cash, cash equivalents, and availability of funds from a senior secured term loan) is anticipated to have risen during the period. That metric is pegged at $392 million at the end of the quarter, which would be a $10 million improvement over the end-of-fourth quarter number.

Management also provided some comfort about tariffs, saying that according to its estimates 10% to 15% of its 2024 revenue would have come from countries initially hit with the Trump administration's tariffs. That figure feels mild compared to the impact other businesses and industries stood to endure.

Hand on the throttle

We'll get a clearer picture of Forward's first quarter when the company unveils its audited results on Wednesday, May 7 after market close.

By that time, it's very possible that more tariff "pauses" will be declared, and/or mutually advantageous deals agreed to by this country and its trading partners. If that's the dynamic over the next few days and weeks, we can expect Forward stock to gain more altitude.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.