It has been about a month since the last earnings report for Schneider National (SNDR - Free Report) . Shares have added about 10.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Schneider National due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Schneider National's Q4 Earnings Beat
Schneider National’s earnings (excluding a penny from non-recurring items) of 44 cents per share beat the Zacks Consensus Estimate of 39 cents. The bottom line also increased 18.9% year over year due to higher revenues.
Operating revenues of $1,265.2 million surpassed the Zacks Consensus Estimate of $1,193.8 million and also climbed 9.4% year over year. Moreover, revenues (excluding fuel surcharge) jumped 15% to $1,191.6 million. Results benefited from higher intermodal and logistics revenues.
Income from operations (adjusted) ascended 16% from the prior-year quarter’s level to $106.3 million. Also, adjusted operating ratio (operating expenses as a percentage of revenues) improved 10 basis points to 91.1%. Notably, lower the value of the ratio, the better.
Segmental Highlights
Truckload revenues (excluding fuel surcharge) slipped 5% to $470.3 million due to low network capacity. Average trucks (company trucks and owner-operated trucks) in the segment also fell 5.7% to 9,764. Revenue per truck per week in the segment increased marginally. Truckload income from operations was $65.1 million in the reported quarter, indicating a rise of 61% from the year-ago period. Moreover, operating ratio improved to 86.2% from 91.8% in the year-ago quarter.
Intermodal revenues (excluding fuel surcharge) were $269.3 million, up 3% year over year. Revenue per order dipped marginally due to shorter length of haul Eastern freight. Segmental income from operations plunged 23% to $24.7 million primarily due to rail operating issues. Additionally, intermodal operating ratio deteriorated to 90.8% in the fourth quarter from 87.7% in the year-ago quarter.
Logistics revenues (excluding fuel surcharge) surged 64% to $374.4 million primarily due to expanded brokerage volumes and increase in revenue per order. Logistics income from operations soared more than 100% on a year-on-year basis. Further, operating ratio in the segment improved to 94.2% from 96.5% in the fourth quarter of 2019.
Liquidity
Schneider exited the fourth quarter with cash and cash equivalents of $395.5 million compared with $551.6 million at the end of 2019.
Outlook
For 2021, Schneider anticipates adjusted earnings per share to be between $1.45 and $1.60. Additionally, the company estimates net capital expenditures of approximately $425 million for the year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, Schneider National has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Schneider National has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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It has been about a month since the last earnings report for Schneider National (SNDR - Free Report) . Shares have added about 10.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Schneider National due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Schneider National's Q4 Earnings Beat
Schneider National’s earnings (excluding a penny from non-recurring items) of 44 cents per share beat the Zacks Consensus Estimate of 39 cents. The bottom line also increased 18.9% year over year due to higher revenues.
Operating revenues of $1,265.2 million surpassed the Zacks Consensus Estimate of $1,193.8 million and also climbed 9.4% year over year. Moreover, revenues (excluding fuel surcharge) jumped 15% to $1,191.6 million. Results benefited from higher intermodal and logistics revenues.
Income from operations (adjusted) ascended 16% from the prior-year quarter’s level to $106.3 million. Also, adjusted operating ratio (operating expenses as a percentage of revenues) improved 10 basis points to 91.1%. Notably, lower the value of the ratio, the better.
Segmental Highlights
Truckload revenues (excluding fuel surcharge) slipped 5% to $470.3 million due to low network capacity. Average trucks (company trucks and owner-operated trucks) in the segment also fell 5.7% to 9,764. Revenue per truck per week in the segment increased marginally. Truckload income from operations was $65.1 million in the reported quarter, indicating a rise of 61% from the year-ago period. Moreover, operating ratio improved to 86.2% from 91.8% in the year-ago quarter.
Intermodal revenues (excluding fuel surcharge) were $269.3 million, up 3% year over year. Revenue per order dipped marginally due to shorter length of haul Eastern freight. Segmental income from operations plunged 23% to $24.7 million primarily due to rail operating issues. Additionally, intermodal operating ratio deteriorated to 90.8% in the fourth quarter from 87.7% in the year-ago quarter.
Logistics revenues (excluding fuel surcharge) surged 64% to $374.4 million primarily due to expanded brokerage volumes and increase in revenue per order. Logistics income from operations soared more than 100% on a year-on-year basis. Further, operating ratio in the segment improved to 94.2% from 96.5% in the fourth quarter of 2019.
Liquidity
Schneider exited the fourth quarter with cash and cash equivalents of $395.5 million compared with $551.6 million at the end of 2019.
Outlook
For 2021, Schneider anticipates adjusted earnings per share to be between $1.45 and $1.60. Additionally, the company estimates net capital expenditures of approximately $425 million for the year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, Schneider National has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Schneider National has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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