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Low Expenses Aid Schneider National (SNDR) Amid Pandemic Woes

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Schneider National, Inc. (SNDR - Free Report) is taking a hit from the coronavirus pandemic. A decline of 4.1% in 2020 revenues reflects coronavirus-led disruptions among other factors. Low freight volumes are exerting pressure on the company’s performance.

Decline in truckload (major revenue generating segment) revenues due to lower volumes is quite a concern.

However, significant reduction in operating expenses is aiding Schneider’s bottom line. Total operating expenses declined 6% year over year in 2020 owing to fall in purchased transportation costs as well as expenses on fuel and salaries, wages as well as benefits. Operating expenses were nearly flat in first-quarter 2021.

Additionally, uptick in intermodal revenues in fourth-quarter 2020 and first-quarter 2021 bode well for the company. After increasing 3% year over year in fourth-quarter 2020, segmental revenues appreciated 7% in first-quarter 2021. Results were driven by yield management actions and Eastern network growth.

Zacks Rank & Stocks to Consider

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

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

Long-term (three to five years) expected earnings per share growth rate for Landstar, Triton and Herc Holdings is projected at 12%, 10% and 42.9%, respectively.

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