12:48 PM EDT, 07/29/2024 (MT Newswires) -- Saia ( SAIA ) remains an "attractive" multi-year growth story despite its lower-than-expected Q2 earnings and weaker margins that caused its stock to trade down 19%, UBS Securities said in a note Monday.

Concerns in Q2 were weaker margin and softer revenue, with a higher portion of business with national accounts, more retail/less industrial shipments, and shorter length of haul causing mix pressure, according to UBS.

"We believe the [Q2] issues are cyclical and reflect a combination of a different than expected mix of business and the impact of the rapid expansion of [Saia ( SAIA )] terminal network," the investment bank said.

UBS decreased its 2024 earnings per share estimate to $13.90 per share from $14.90 per share and also reduced its 2025 forecast to $17 per share from $18.10 per share, reflecting 22% EPS growth.

With the additional 21 terminals, however, Saia ( SAIA ) is likely to post "favorable" shipment and revenue growth in 2025 at strong incremental margins, according to UBS.

UBS maintained its buy rating on Saia ( SAIA ) and adjusted its price target to $493 from $525.

Price: 397.88, Change: +1.44, Percent Change: +0.36