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Schneider (SNDR) Benefits From Segmental Growth, Costs Ail
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Shares of Schneider National, Inc. (SNDR - Free Report) have gained 12.2% over the past six months against the 3.1% decline of the industry it belongs to.
Image Source: Zacks Investment Research
The company benefits from strength across its Truckload and Intermodal segments. Notably, the solid performance in the Truckload and Intermodal segments is driving Schneider National’s top line, which increased 18% and 13%, respectively, year over year in the third quarter of 2022.
The rise in Truckload revenues was due to Midwest Logistics Systems’ revenues, effective yield management and dedicated new business growth. The Intermodal segment is benefiting from an improvement in revenues per order.
The company’s sound liquidity position is encouraging enough. Its cash and equivalents at the end of the third quarter totaled $349.7 million, higher than the long-term debt of $140.1 million. This indicates that it has enough cash to pay off its debt obligations.
On the flip side, Schneider’s 2022 earnings guidance is not that encouraging. SNDR now anticipates 2022 adjusted earnings per share in the range of $2.60-$2.65 (previous view: $2.60-$2.70).
Further, rising operating expenses, mainly due to high purchased transportation costs, salaries, wages and benefits, can hurt the bottom line. Total operating expenses increased 18.5% year over year in third-quarter 2022, with a 6.2% rise in purchased transportation costs and a 22.6% jump in salaries, wages and benefits expenses.
Some better-ranked stocks from the broader Zacks Transportation sector are United Airlines Holdings, Inc. (UAL - Free Report) , Ryder Systems (R - Free Report) and Teekay Tankers Ltd. (TNK - Free Report) ),each currently carrying a Zacks Rank #2 (Buy).
UAL has an expected earnings growth rate of 115.64% for the current year. UAL delivered a trailing four-quarter earnings surprise of 7.78%, on average.
The Zacks Consensus Estimate for UAL’s current-year earnings has improved more than 100% over the past 90 days. Shares of UAL have gained 6.6% over the past year.
Ryder has an expected earnings growth rate of 67.12% for the current year. R delivered a trailing four-quarter earnings surprise of 30.13%, on average.
The Zacks Consensus Estimate for R’s current-year earnings has improved 6.9% over the past 90 days. Shares of R have gained 4.7% over the past year.
Teekay Tankers has an expected earnings growth rate of 214.91% for the current year. TNK delivered a trailing four-quarter earnings surprise of 42.23%, on average. Teekay Tankers has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved 95% over the past 90 days. Shares of TNK have soared 176.8% over the past year.
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Schneider (SNDR) Benefits From Segmental Growth, Costs Ail
Shares of Schneider National, Inc. (SNDR - Free Report) have gained 12.2% over the past six months against the 3.1% decline of the industry it belongs to.
Image Source: Zacks Investment Research
The company benefits from strength across its Truckload and Intermodal segments. Notably, the solid performance in the Truckload and Intermodal segments is driving Schneider National’s top line, which increased 18% and 13%, respectively, year over year in the third quarter of 2022.
The rise in Truckload revenues was due to Midwest Logistics Systems’ revenues, effective yield management and dedicated new business growth. The Intermodal segment is benefiting from an improvement in revenues per order.
The company’s sound liquidity position is encouraging enough. Its cash and equivalents at the end of the third quarter totaled $349.7 million, higher than the long-term debt of $140.1 million. This indicates that it has enough cash to pay off its debt obligations.
On the flip side, Schneider’s 2022 earnings guidance is not that encouraging. SNDR now anticipates 2022 adjusted earnings per share in the range of $2.60-$2.65 (previous view: $2.60-$2.70).
Further, rising operating expenses, mainly due to high purchased transportation costs, salaries, wages and benefits, can hurt the bottom line. Total operating expenses increased 18.5% year over year in third-quarter 2022, with a 6.2% rise in purchased transportation costs and a 22.6% jump in salaries, wages and benefits expenses.
Zacks Rank & Stocks to Consider
Currently, Schneider carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks from the broader Zacks Transportation sector are United Airlines Holdings, Inc. (UAL - Free Report) , Ryder Systems (R - Free Report) and Teekay Tankers Ltd. (TNK - Free Report) ), each currently carrying a Zacks Rank #2 (Buy).
UAL has an expected earnings growth rate of 115.64% for the current year. UAL delivered a trailing four-quarter earnings surprise of 7.78%, on average.
The Zacks Consensus Estimate for UAL’s current-year earnings has improved more than 100% over the past 90 days. Shares of UAL have gained 6.6% over the past year.
Ryder has an expected earnings growth rate of 67.12% for the current year. R delivered a trailing four-quarter earnings surprise of 30.13%, on average.
The Zacks Consensus Estimate for R’s current-year earnings has improved 6.9% over the past 90 days. Shares of R have gained 4.7% over the past year.
Teekay Tankers has an expected earnings growth rate of 214.91% for the current year. TNK delivered a trailing four-quarter earnings surprise of 42.23%, on average. Teekay Tankers has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved 95% over the past 90 days. Shares of TNK have soared 176.8% over the past year.