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Schneider (SNDR) Benefits From Low Expenses Amid Coronavirus

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We recently issued an updated report on Schneider National, Inc. (SNDR - Free Report) .
Despite coronavirus-led adversities, the company's logistics revenues increased 6.8% year over year in the first nine months of 2020. The upside can be attributed to expanded brokerage volumes and increase in revenue per order. Additionally, improving performance in the intermodal segment is encouraging.

Significant reduction in operating expenses is boosting Schneider’s bottom line. Total operating expenses declined 10.3% year over year in the first nine months of 2020 with decline in purchased transportation costs as well as expenses on fuel and salaries, wages and benefits.

Meanwhile, decline in truckload (major revenue generating segment) revenues due to lower volumes among other factors is quite concerning. Notably, revenues in the unit fell 12.7% year over year in the first nine months of 2020.

Additionally, persistent network disruption is hurting performance in the intermodal segment. The situation might persist through the fourth quarter and affect the overall segmental performance.

Zacks Rank & Stocks to Consider

Schneider National currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , Landstar System, Inc. (LSTR - Free Report) and Herc Holdings Inc. (HRI - Free Report) . Landstar carries a Zacks Rank #2 (Buy), while Knight-Swift and Herc Holdings sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, Landstar and Herc Holdings is pegged at 15%, 12% and 12.6%, respectively.

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