We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Strong Liquidity Aids Schneider (SNDR) Amid High Expenses
Read MoreHide Full Article
We have recently updated a report on Schneider National, Inc. (SNDR - Free Report) .
Schneider National has an impressive Growth Score of A. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of quality and sustainability of growth.
We are impressed with Schneider National's efforts to reward its shareholders even amid current uncertainties. To this end, the company's board approved a 14.3% hike in its quarterly cash dividend to 8 cents per share on its Class A and Class B common stock. The hiked dividend is payable on Apr 8, 2022, to shareholders of record as of Mar 11, 2022.
The company has a sound liquidity position. Its cash and equivalents at the end of the fourth quarter totaled $244.8 million, higher than the current maturities of debt and finance lease obligations of $61.4 million. This indicates that it has enough cash to pay off its short-term debt.
Escalating operating expenses, mainly due to high purchased transportation costs and salaries, wages and benefits expenses, can hurt the bottom line. Total operating expenses increased 19% year over year in 2021, with a 36% surge in purchased transportation costs and an approximate 9.8% rise in salaries, wages and benefits expenses.
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 Expeditors International of Washington, Inc. (EXPD - Free Report) , Old Dominion (ODFL - Free Report) and Triton International Limited .
Expeditors has an earnings surprise of 34.2%, having surpassed the Zacks Consensus Estimate in all of the last four quarters. Expeditors is being aided by the uptick in airfreight revenues. We are optimistic about the company’s buyout of Fleet Logistics’ Digital Platform. The acquisition has boosted Expeditors’ online LTL shipping platform, Koho. The move is in line with the company's focus on Digital Solutions.
The long-term expected EPS (three to five years) growth rate for Old Dominion is pegged at 16%. ODFL is benefiting from strong performance in the LTL segment, owing to improved freight conditions. In 2021, revenues in the LTL services segment increased 30.7% on a year-over-year basis.
Driven by the tailwinds, the stock has increased 32% in the past year. ODFL currently carries a Zacks Rank #2 (Buy).
The long-term expected EPS (three to five years) growth rate for Triton is pegged at 10%. Gradual increases in trade volumes and container demand bode well for the company. With easing coronavirus-led restrictions in the United States and Europe, the company saw a strong rebound in its business in the third, the fourth of 2020 as well as in each of the four quarters of 2021.
Driven by the tailwinds, the stock has increased 8.4% in the past year. TRTN currently carries a Zacks Rank #2.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Strong Liquidity Aids Schneider (SNDR) Amid High Expenses
We have recently updated a report on Schneider National, Inc. (SNDR - Free Report) .
Schneider National has an impressive Growth Score of A. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of quality and sustainability of growth.
We are impressed with Schneider National's efforts to reward its shareholders even amid current uncertainties. To this end, the company's board approved a 14.3% hike in its quarterly cash dividend to 8 cents per share on its Class A and Class B common stock. The hiked dividend is payable on Apr 8, 2022, to shareholders of record as of Mar 11, 2022.
The company has a sound liquidity position. Its cash and equivalents at the end of the fourth quarter totaled $244.8 million, higher than the current maturities of debt and finance lease obligations of $61.4 million. This indicates that it has enough cash to pay off its short-term debt.
Escalating operating expenses, mainly due to high purchased transportation costs and salaries, wages and benefits expenses, can hurt the bottom line. Total operating expenses increased 19% year over year in 2021, with a 36% surge in purchased transportation costs and an approximate 9.8% rise in salaries, wages and benefits expenses.
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 Expeditors International of Washington, Inc. (EXPD - Free Report) , Old Dominion (ODFL - Free Report) and Triton International Limited .
Expeditors has an earnings surprise of 34.2%, having surpassed the Zacks Consensus Estimate in all of the last four quarters. Expeditors is being aided by the uptick in airfreight revenues. We are optimistic about the company’s buyout of Fleet Logistics’ Digital Platform. The acquisition has boosted Expeditors’ online LTL shipping platform, Koho. The move is in line with the company's focus on Digital Solutions.
EXPD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term expected EPS (three to five years) growth rate for Old Dominion is pegged at 16%. ODFL is benefiting from strong performance in the LTL segment, owing to improved freight conditions. In 2021, revenues in the LTL services segment increased 30.7% on a year-over-year basis.
Driven by the tailwinds, the stock has increased 32% in the past year. ODFL currently carries a Zacks Rank #2 (Buy).
The long-term expected EPS (three to five years) growth rate for Triton is pegged at 10%. Gradual increases in trade volumes and container demand bode well for the company. With easing coronavirus-led restrictions in the United States and Europe, the company saw a strong rebound in its business in the third, the fourth of 2020 as well as in each of the four quarters of 2021.
Driven by the tailwinds, the stock has increased 8.4% in the past year. TRTN currently carries a Zacks Rank #2.