Schneider National, Inc.’s (SNDR - Free Report) first-quarter 2020 earnings (excluding 1 cent from non-recurring items) of 24 cents per share surpassed the Zacks Consensus Estimate by 5 cents. Moreover, the bottom line increased 14.3% on a year-over-year basis. Also, operating revenues dropped 6.3% to $1,119.1 million and lagged the Zacks Consensus Estimate of. Moreover, revenues (excluding fuel surcharge) fell 6% to $1,016.1 million. Results were hampered by lower volumes, downside in fuel surcharge revenues and coronavirus-led disruptions.
Income from operations (on a reported basis) increased 7% from the prior-year quarter’s level to $54.9 million owing to elimination of FTFM operating losses, cost-cut initiatives and lower fuel costs. Adjusted income from operations increased 4% to $53.7 million in the March-end quarter. Also, adjusted operating ratio (operating expenses as a percentage of revenues) improved 50 basis points to 94.7%. Notably, lower the value of the ratio the better.
Segmental Highlights
Truckload revenues (excluding fuel surcharge) slipped 12% to $469.4 million. Average trucks (company trucks and owner-operated trucks) in the segment also fell 11.8% to 10,207. Further, revenue per truck per week for the segment dropped 1.3%. This downside was mainly due to shutdown of FTFM operations and unfavorable pricing. Truckload income from operations was $36.6 million in the reported quarter, up 58%. Moreover, adjusted operating ratio improved to 92.2% from 95.6% in the year-earlier quarter.
Intermodal revenues (excluding fuel surcharge) were $261.2 million, flat with the first quarter 2019. Revenue per order declining 4%, primarily due a higher mix of shorter length of haul volume. Segmental income from operations decreased 18% to $16.3 million as a result increased rail purchased transportation costs. Additionally, intermodal operating ratio deteriorated to 93.2% in the first quarter from the prior year’s 91.6%.
Logistics revenues (excluding fuel surcharge) dropped 2% to $239.6 million, primarily due to a customer in-sourcing activity in the segment’s import/export operations. However, net revenue compression primarily induced a 59% decline in segmental income from operations to $4.2 million. Further, operating ratio in the segment deteriorated to 98.2% from 95.8% in the first quarter of 2020.
Liquidity
Schneider, carrying a Zacks Rank #4 (Sell), exited the first quarter with cash and cash equivalents of $600.6 million compared with $551.6 million at the end of 2019.
Suspends 2020 EPS Guidance
Due to uncertainties related to the magnitude and duration of COVID-19 crisis, Schneider has suspended its full year 2020 EPS guidance.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sectorial Snapshot
Apart from Schneider, there are a few companies in the Zacks Transportation sector like Werner Enterprises, Inc. (WERN - Free Report) , Union Pacific Corporation (UNP - Free Report) and Canadian Pacific Railway Limited’s (CP - Free Report) that have beaten earnings estimates in first-quarter 2020.
Werner Enterprises reported first-quarter 2020 earnings per share (excluding 7 cents from non-recurring items) of 40 cents, which surpassed the Zacks Consensus Estimate of 35 cents. However, the bottom line declined 23.1% year over year.
Union Pacific’s first-quarter 2020 earnings of $2.15 per share surpassed the Zacks Consensus Estimate of $1.86. Moreover, the bottom line increased 11.4% on a year-over-year basis.
Canadian Pacific’s first-quarter 2020 earnings (excluding $1.08 from non-recurring items) of $3.3 (C$4.42) per share surpassed the Zacks Consensus Estimate of $2.86. Quarterly earnings surged more than 55% year over year.
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Schneider National, Inc.’s (SNDR - Free Report) first-quarter 2020 earnings (excluding 1 cent from non-recurring items) of 24 cents per share surpassed the Zacks Consensus Estimate by 5 cents. Moreover, the bottom line increased 14.3% on a year-over-year basis. Also, operating revenues dropped 6.3% to $1,119.1 million and lagged the Zacks Consensus Estimate of. Moreover, revenues (excluding fuel surcharge) fell 6% to $1,016.1 million. Results were hampered by lower volumes, downside in fuel surcharge revenues and coronavirus-led disruptions.
Income from operations (on a reported basis) increased 7% from the prior-year quarter’s level to $54.9 million owing to elimination of FTFM operating losses, cost-cut initiatives and lower fuel costs. Adjusted income from operations increased 4% to $53.7 million in the March-end quarter. Also, adjusted operating ratio (operating expenses as a percentage of revenues) improved 50 basis points to 94.7%. Notably, lower the value of the ratio the better.
Segmental Highlights
Truckload revenues (excluding fuel surcharge) slipped 12% to $469.4 million. Average trucks (company trucks and owner-operated trucks) in the segment also fell 11.8% to 10,207. Further, revenue per truck per week for the segment dropped 1.3%. This downside was mainly due to shutdown of FTFM operations and unfavorable pricing. Truckload income from operations was $36.6 million in the reported quarter, up 58%. Moreover, adjusted operating ratio improved to 92.2% from 95.6% in the year-earlier quarter.
Intermodal revenues (excluding fuel surcharge) were $261.2 million, flat with the first quarter 2019. Revenue per order declining 4%, primarily due a higher mix of shorter length of haul volume. Segmental income from operations decreased 18% to $16.3 million as a result increased rail purchased transportation costs. Additionally, intermodal operating ratio deteriorated to 93.2% in the first quarter from the prior year’s 91.6%.
Logistics revenues (excluding fuel surcharge) dropped 2% to $239.6 million, primarily due to a customer in-sourcing activity in the segment’s import/export operations. However, net revenue compression primarily induced a 59% decline in segmental income from operations to $4.2 million. Further, operating ratio in the segment deteriorated to 98.2% from 95.8% in the first quarter of 2020.
Liquidity
Schneider, carrying a Zacks Rank #4 (Sell), exited the first quarter with cash and cash equivalents of $600.6 million compared with $551.6 million at the end of 2019.
Suspends 2020 EPS Guidance
Due to uncertainties related to the magnitude and duration of COVID-19 crisis, Schneider has suspended its full year 2020 EPS guidance.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sectorial Snapshot
Apart from Schneider, there are a few companies in the Zacks Transportation sector like Werner Enterprises, Inc. (WERN - Free Report) , Union Pacific Corporation (UNP - Free Report) and Canadian Pacific Railway Limited’s (CP - Free Report) that have beaten earnings estimates in first-quarter 2020.
Werner Enterprises reported first-quarter 2020 earnings per share (excluding 7 cents from non-recurring items) of 40 cents, which surpassed the Zacks Consensus Estimate of 35 cents. However, the bottom line declined 23.1% year over year.
Union Pacific’s first-quarter 2020 earnings of $2.15 per share surpassed the Zacks Consensus Estimate of $1.86. Moreover, the bottom line increased 11.4% on a year-over-year basis.
Canadian Pacific’s first-quarter 2020 earnings (excluding $1.08 from non-recurring items) of $3.3 (C$4.42) per share surpassed the Zacks Consensus Estimate of $2.86. Quarterly earnings surged more than 55% year over year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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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