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Schneider (SNDR) Rides on Segmental Growth, Expenses Ail
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Schneider National, Inc. (SNDR - Free Report) benefits from strength across its Truckload and Intermodal segments. Shares of Schneider have gained 18.7% over the past six months, outperforming the 3.2% rise of the industry it belongs to.
Image Source: Zacks Investment Research
The company recently reported fourth-quarter 2022 earnings of 64 cents per share, which 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.
How is Schneider Doing?
Solid performance in the Truckload and Intermodal segments is driving Schneider National’s top line, which increased 15.5% and 12.6%, respectively, year over year in 2022. The rise in Truckload revenues was owing 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.
Efforts to reward its shareholders even in the current uncertain times is encouraging. To this end, in January 2022, 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. Such moves instill investors’ confidence in the stock.
The company’s sound liquidity position is encouraging enough. Its cash and equivalents at the end of fourth-quarter 2022 totaled $385.7 million, higher than the long-term debt of $141.8 million. This indicates that it has enough cash to pay off its debt obligations.
On the flip side, rising operating expenses, mainly due to high purchased transportation costs and salaries, wages and benefits, can hurt the bottom line. Total operating expenses increased 18.3% year over year in 2022, with a 9.2% rise in purchased transportation costs and 19.7% growth in salaries, wages and benefits expenses.
Net capital expenditures increased 70.3% year over year to $461.7 million in 2022. For 2023, Schneider expects net capital expenditures to be between $525 million and $575 million. Rising capital expenditures does not bode well for the company.
Zacks Rank & Stocks to Consider
Currently, Schneider carries a Zacks Rank #3 (Hold).
Copa Holdings has an expected earnings growth rate of 33.66% for the current year. CPA delivered a trailing four-quarter earnings surprise of 33.35%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 12.65% over the past 90 days. Shares of CPA have soared 7.2% over the past six months.
Alaska Air has an expected earnings growth rate of 32.64% for the current year. ALK delivered a trailing four-quarter earnings surprise of 8.98%, on average.
The Zacks Consensus Estimate for ALK’s current-year earnings has improved 11.4% over the past 90 days. Shares of ALK have soared 4.7% over the past six months.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 40.5% over the past 90 days. Shares of AAL have gained 13% over the past six months.
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Schneider (SNDR) Rides on Segmental Growth, Expenses Ail
Schneider National, Inc. (SNDR - Free Report) benefits from strength across its Truckload and Intermodal segments. Shares of Schneider have gained 18.7% over the past six months, outperforming the 3.2% rise of the industry it belongs to.
Image Source: Zacks Investment Research
The company recently reported fourth-quarter 2022 earnings of 64 cents per share, which 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.
How is Schneider Doing?
Solid performance in the Truckload and Intermodal segments is driving Schneider National’s top line, which increased 15.5% and 12.6%, respectively, year over year in 2022. The rise in Truckload revenues was owing 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.
Efforts to reward its shareholders even in the current uncertain times is encouraging. To this end, in January 2022, 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. Such moves instill investors’ confidence in the stock.
The company’s sound liquidity position is encouraging enough. Its cash and equivalents at the end of fourth-quarter 2022 totaled $385.7 million, higher than the long-term debt of $141.8 million. This indicates that it has enough cash to pay off its debt obligations.
On the flip side, rising operating expenses, mainly due to high purchased transportation costs and salaries, wages and benefits, can hurt the bottom line. Total operating expenses increased 18.3% year over year in 2022, with a 9.2% rise in purchased transportation costs and 19.7% growth in salaries, wages and benefits expenses.
Net capital expenditures increased 70.3% year over year to $461.7 million in 2022. For 2023, Schneider expects net capital expenditures to be between $525 million and $575 million. Rising capital expenditures does not bode well for the company.
Zacks Rank & Stocks to Consider
Currently, Schneider carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader Zacks Transportation sector are Copa Holdings, S.A. (CPA - Free Report) , Alaska Air Group, Inc. (ALK - Free Report) and American Airlines (AAL - Free Report) . Copa Holdings presently sports a Zacks Rank #1 (Strong Buy), while Alaska Air and American Airlines currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings has an expected earnings growth rate of 33.66% for the current year. CPA delivered a trailing four-quarter earnings surprise of 33.35%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 12.65% over the past 90 days. Shares of CPA have soared 7.2% over the past six months.
Alaska Air has an expected earnings growth rate of 32.64% for the current year. ALK delivered a trailing four-quarter earnings surprise of 8.98%, on average.
The Zacks Consensus Estimate for ALK’s current-year earnings has improved 11.4% over the past 90 days. Shares of ALK have soared 4.7% over the past six months.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 40.5% over the past 90 days. Shares of AAL have gained 13% over the past six months.