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Schneider (SNDR) Q3 Earnings Miss Estimates, Decrease Y/Y
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Schneider National’s (SNDR - Free Report) third-quarter 2019 earnings (excluding 21 cents from non-recurring items) of 32 cents per share missed the Zacks Consensus Estimate by 3 cents. The bottom line also declined 20% year over year. Also, operating revenues dipped 7.52% to $1183.9 million, lagging the Zacks Consensus Estimate of $1,224.7 million. Moreover, revenues (excluding fuel surcharge) decreased 7% to $1,069.7 million. Results were hampered by lower volumes and unfavorable pricing.
Moreover, income from operations (on a reported basis) plunged 70% to $29 million in the third quarter, mainly due to the $50.4-million charges regarding the first-to-final mile shutdown (FTFM) within the truckload unit. Also, adjusted operating ratio (operating expenses as a percentage of revenues) deteriorated 110 basis points to 92.6%.
Segmental Highlights
Truckload revenues (excluding fuel surcharge) declined 9% to $515.6 million. Average trucks (company trucks and owner-operated trucks) in the segment also fell 4.2% to 10,919. Further, revenue per truck per week for the segment dropped 6%. This downside was due to lower volumes and unfavorable pricing.
Loss from operations at the segment was $12.5 million versus income from operations of $54.4 million a year ago due to FTFM shutdown, tractor impairment charges and lower price as well as volume. Moreover, operating ratio deteriorated to 102.4% from 90.4% in the year-earlier period. Lower the value of the ratio the better.
Intermodal revenues (excluding fuel surcharge) dipped 2% to $249.2 million with orders declining 4%, mainly due to unfavorable volumes in the domestic intermodal freight market. Segmental income from operations decreased 30% as a result of contracted volumes and higher purchased third-party costs. Additionally, intermodal operating ratio deteriorated to 89.9% in the reported quarter from 85.8% in the prior-year.
Logistics revenues (excluding fuel surcharge) dropped 13% to $236.1 million, primarily due to a customer in-sourcing activity in the segment’s import/export operations. Brokerage accounted for 86.9% of logistics revenues (excluding fuel surcharge) in the quarter compared with 79.1% in the prior year with brokerage volume expanding 11% year over year.
However, brokerage net revenue compression primarily induced a 24% decline in segmental income from operations. Further, operating ratio at the segment deteriorated to 95.8% from 95.2% in the third quarter of 2018.
Schneider National, Inc. Price, Consensus and EPS Surprise
This Zacks Rank #3 (Hold) company expects full-year adjusted earnings per share between $1.24 and $1.30, lower than the previous projection of $1.30-$1.38. The Zacks Consensus Estimate for 2019 earnings stands at $1.32. The slashed guidance is mainly due to the tractor impairment charge of $11.5 million recognized in the September quarter. Meanwhile, the forecast for net capital expenditures was cut from $325 million to $310 million, mainly owing to the anticipation of higher proceeds from sale of tractors.
Investors interested in the broader Transportation sector are awaiting third-quarter earnings reports from key players like Expeditors International of Washington (EXPD - Free Report) , Air Lease Corporation (AL - Free Report) and Copa Holdings (CPA - Free Report) . While Expeditors and Air Lease will release third-quarter results on Nov 5 and Nov 7, respectively, Copa Holdings will announce the same on Nov 13.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Schneider (SNDR) Q3 Earnings Miss Estimates, Decrease Y/Y
Schneider National’s (SNDR - Free Report) third-quarter 2019 earnings (excluding 21 cents from non-recurring items) of 32 cents per share missed the Zacks Consensus Estimate by 3 cents. The bottom line also declined 20% year over year. Also, operating revenues dipped 7.52% to $1183.9 million, lagging the Zacks Consensus Estimate of $1,224.7 million. Moreover, revenues (excluding fuel surcharge) decreased 7% to $1,069.7 million. Results were hampered by lower volumes and unfavorable pricing.
Moreover, income from operations (on a reported basis) plunged 70% to $29 million in the third quarter, mainly due to the $50.4-million charges regarding the first-to-final mile shutdown (FTFM) within the truckload unit. Also, adjusted operating ratio (operating expenses as a percentage of revenues) deteriorated 110 basis points to 92.6%.
Segmental Highlights
Truckload revenues (excluding fuel surcharge) declined 9% to $515.6 million. Average trucks (company trucks and owner-operated trucks) in the segment also fell 4.2% to 10,919. Further, revenue per truck per week for the segment dropped 6%. This downside was due to lower volumes and unfavorable pricing.
Loss from operations at the segment was $12.5 million versus income from operations of $54.4 million a year ago due to FTFM shutdown, tractor impairment charges and lower price as well as volume. Moreover, operating ratio deteriorated to 102.4% from 90.4% in the year-earlier period. Lower the value of the ratio the better.
Intermodal revenues (excluding fuel surcharge) dipped 2% to $249.2 million with orders declining 4%, mainly due to unfavorable volumes in the domestic intermodal freight market. Segmental income from operations decreased 30% as a result of contracted volumes and higher purchased third-party costs. Additionally, intermodal operating ratio deteriorated to 89.9% in the reported quarter from 85.8% in the prior-year.
Logistics revenues (excluding fuel surcharge) dropped 13% to $236.1 million, primarily due to a customer in-sourcing activity in the segment’s import/export operations. Brokerage accounted for 86.9% of logistics revenues (excluding fuel surcharge) in the quarter compared with 79.1% in the prior year with brokerage volume expanding 11% year over year.
However, brokerage net revenue compression primarily induced a 24% decline in segmental income from operations. Further, operating ratio at the segment deteriorated to 95.8% from 95.2% in the third quarter of 2018.
Schneider National, Inc. Price, Consensus and EPS Surprise
Schneider National, Inc. price-consensus-eps-surprise-chart | Schneider National, Inc. Quote
This Zacks Rank #3 (Hold) company expects full-year adjusted earnings per share between $1.24 and $1.30, lower than the previous projection of $1.30-$1.38. The Zacks Consensus Estimate for 2019 earnings stands at $1.32. The slashed guidance is mainly due to the tractor impairment charge of $11.5 million recognized in the September quarter. Meanwhile, the forecast for net capital expenditures was cut from $325 million to $310 million, mainly owing to the anticipation of higher proceeds from sale of tractors.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Investors interested in the broader Transportation sector are awaiting third-quarter earnings reports from key players like Expeditors International of Washington (EXPD - Free Report) , Air Lease Corporation (AL - Free Report) and Copa Holdings (CPA - Free Report) . While Expeditors and Air Lease will release third-quarter results on Nov 5 and Nov 7, respectively, Copa Holdings will announce the same on Nov 13.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>