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Schneider (SNDR) Stock Down 2.4% Despite Q4 Earnings Beat

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Schneider National, Inc. (SNDR - Free Report) stock has declined 2.4% since its fourth-quarter 2022 earnings release on Feb 2.

Quarterly earnings of 64 cents per share beat the Zacks Consensus Estimate of 61 cents but declined 16% from the year-ago quarter’s levels. Operating revenues of $1,561.7 million lagged the Zacks Consensus Estimate of $1,678.5 million and fell 1% year over year. Revenues (excluding fuel surcharge) decreased 7% to $1,347.7 million.

Income from operations (adjusted) fell 16% from the prior-year quarter’s level to $148.3 million. The adjusted operating ratio fell 130 basis points to 89%.

Segmental Highlights

Truckload revenues (excluding fuel surcharge) for the fourth quarter of 2022 grew 4% year over year to $545.4 million. The uptick was owing to dedicated growth, including the MLS acquisition and nearly 500 units of organic dedicated new business, partially offset by lower miles per tractor related to moderating market demand and lower network price, including less premium freight opportunities year over year. Truckload revenue per truck per week was $4,171, down 8% year over year.

Truckload income from operations decreased 21% year over year to $68.9 million in the fourth quarter of 2022. Truckload segment operating ratio rose to 87.4% in the fourth quarter of 2022 from 83.3% in fourth-quarter 2021.

Intermodal revenues (excluding fuel surcharge) were $315.5 million, down 1% year over year, owing to moderating market demand, partially offset by a 7%
improvement in revenue per order. Intermodal income from operations was $52.8 million, down 3% year over year. Intermodal operating ratio was 83.3% in the fourth quarter of 2022, a sequential improvement of 740 basis points from the third quarter of 2022.

Logistics revenues (excluding fuel surcharge) for the fourth quarter of 2022 came in at $425.0 million, down 22% year over year owing to decreased revenue per order and 5% lower brokerage volume year over year. Logistics income from operations was $24.1 million, down 36% year over year, owing to lower volumes and decreased net revenue per order. The logistics operating ratio rose to 94.3% in the fourth quarter of 2022 from 93.2% in the year-ago reported quarter.

Liquidity

Schneider exited the fourth quarter with cash and cash equivalents of $385.7 million compared with $349.7 million at the end of September 2022. Long-term debt was $141.8 million at the end of the third quarter compared with $140.1 million at the end of September 2022.

2023 Outlook

Schneider anticipates 2023 adjusted earnings per share in the range of $2.15-$2.35. The Zacks Consensus Estimate of $2.18 lies within the guidance.

The company expects net capital expenditures to be between $525 million and $575 million. The full-year effective tax rate is expected to be around 24.5%.

Currently, Schneider carries a Zacks Rank #4 (Sell).

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

Performance of Other Transportation Companies

United Airlines’ (UAL - Free Report) fourth-quarter 2022 earnings of $2.46 per share beat the Zacks Consensus Estimate of $2.07. In the year-ago quarter, UAL incurred a loss of $1.60 per share when air-travel demand was not as buoyant as in the current scenario. The fourth quarter of 2022 was the third consecutive profitable quarter at UAL since the onset of the pandemic.

Operating revenues of $12,400 million beat the Zacks Consensus Estimate of $12,230 million. UAL’s revenues increased 51.37% year over year owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.9% from fourth-quarter 2019 (pre-coronavirus) levels.

Delta Air Lines’ (DAL - Free Report) fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29 per share. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.

DAL reported revenues of $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased more than 41.87% on a year-over-year basis.

J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2022 earnings of $1.92 per share missed the Zacks Consensus Estimate of $2.45 and declined 16% year over year.

JBHT’s total operating revenues of $3,649.62 million also lagged the Zacks Consensus Estimate of $3,796.8 million. The top line jumped 4.4% year over year. Total operating revenues, excluding fuel surcharges, fell 2.9% year over year.

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