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Schneider (SNDR) Beats on Q1 Earnings, Ups 2021 Outlook

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Schneider National Inc.’s (SNDR - Free Report) first-quarter 2021 earnings of 31 cents per share beat the Zacks Consensus Estimate of 29 cents. The bottom line also increased 29.2% year over year due to improvement in operating ratio.

Operating revenues of $1,228.6 million surpassed the Zacks Consensus Estimate of $1,156.2 million and also climbed 9.8% year over year. Moreover, revenues (excluding fuel surcharge) increased 12% to $1,138.4 million. Results benefited from higher intermodal and logistics revenues.

Income from operations (adjusted) ascended 42% from the prior-year quarter’s level to $76.2 million.  Also, adjusted operating ratio (operating expenses as a percentage of revenues) rose 140 basis points to 93.3%. Notably, lower the value of the ratio, the better.

Schneider National, Inc. Price, Consensus and EPS Surprise

 

Schneider National, Inc. Price, Consensus and EPS Surprise

Schneider National, Inc. price-consensus-eps-surprise-chart | Schneider National, Inc. Quote

 

Segmental Highlights

Truckload revenues (excluding fuel surcharge) slipped 4% to $451.7 million due to low network capacity and adverse weather conditions. Average trucks (company trucks and owner-operated trucks) in the segment also fell 6.5% to 9,539. Revenue per truck per week in the segment increased 4.1% to $3,706. Truckload income from operations was $38.3 million in the reported quarter, up 5% from the year-ago quarter’s levels. Moreover, operating ratio increased to 91.5% from 92.2% in the year-ago quarter.

Intermodal revenues (excluding fuel surcharge) were $255.8 million, up 7% year over year. Revenue per order increased 6%. Segmental income from operations surged 23% to $20 million primarily due to yield management actions and Eastern network growth. Additionally, intermodal operating ratio rose to 92.2% in the first quarter from 93.2% in the year-ago quarter.

Logistics revenues (excluding fuel surcharge) surged 49% to $355.9 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 95.5% from 98.2% in the first quarter of 2021.

Liquidity

Schneider, carrying a Zacks Rank #3 (Hold), exited the first quarter with cash and cash equivalents of $472.2 million compared with $395.5 million at the end of 2020.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Revised 2021 Outlook

For 2021, Schneider now anticipates adjusted earnings per share to be between $1.60 and $1.70 (previous guidance: $1.45 and $1.60). The Zacks Consensus Estimate is pegged at $1.59.

Additionally, the company estimates net capital expenditures in the range of $375-$425 million (previous guidance: approximately $425 million) for the year.

Sectorial Snapshot

Within the broader Transportation sector, Delta Air Lines (DAL - Free Report) , J.B. Hunt Transport Services (JBHT - Free Report) and Kansas City Southern (KSU - Free Report) recently reported first-quarter 2021 results.

Delta, carrying a Zacks Rank #4 (Sell), incurred a loss (excluding $1.70 from non-recurring items) of $3.55 per share. The figure was wider than the Zacks Consensus Estimate of a loss of $3.08. Total revenues of $4,150 million topped the Zacks Consensus Estimate of $3,821.3 million.

J.B. Hunt, a Zacks #3 ranked player, reported earnings of $1.37 per share. The figure beat the Zacks Consensus Estimate of $1.18. Total operating revenues of $2,618.1 million also surpassed the Zacks Consensus Estimate of $2,486.9 million.

Kansas City Southern, carrying a Zacks Rank of 3, reported earnings (excluding 23 cents from non-recurring items) of $1.91 per share. The figure missed the Zacks Consensus Estimate of $2. Quarterly revenues of $706 million lagged the Zacks Consensus Estimate of $714.3 million.

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