12:38 PM EDT, 04/29/2024 (MT Newswires) -- Saia's ( SAIA ) stock fell after Q1 earnings and operating revenue misses but mostly due to a lack of seasonality in March and April, UBS said in a note Monday.

The company's shares declined Friday because of "surprise on the modest miss but even more a response to the weaker forward view on freight activity. Saia ( SAIA ) indicated they had expected a stronger pick-up in March and April has continued to modestly underperform seasonality," the analysts, including Thomas Wadewitz, said.

Saia ( SAIA ) and other transport companies expect a slower-than-anticipated increase in business activity and a tightening of transport markets, with the upturn likely to happen in late 2024 or 2025, the analysts said.

Despite a decrease in freight demand and increased expenses due to the company's expansion of terminals, particularly with four added in April and a planned total of 15 to 20 for the year, Saia ( SAIA ) aims for a Q2 sequential operating ratio improvement, the analysts added.

The analysts said they project a "muted" environment for less-than-truckload freight in 2024 but expect a slight increase in Saia's ( SAIA ) profitability in H2 as the use of newly opened terminals improves.

The analysts cut their Q2 EPS estimate by 13%, and full-year 2024 EPS by 9%. For 2025, they expect EPS of $18.66 instead of the previous estimate of $21.31.

UBS adjusted Saia's ( SAIA ) price target to $541 from $618 while maintaining its buy rating.

Price: 424.39, Change: -4.43, Percent Change: -1.03