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Schneider (SNDR) Stock Up 3% On Q1 Earnings Beat

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Schneider National, Inc. (SNDR - Free Report) first-quarter 2023 earnings of 55 cents per share beat the Zacks Consensus Estimate of 45 cents but declined 3.5% from the year-ago quarter’s levels. Operating revenues of $1,428.7 million lagged the Zacks Consensus Estimate of $1,488.7 million and fell 11.8% year over year. Revenues (excluding fuel surcharge) decreased 14% to $1,249.5 million.

Income from operations (adjusted) fell 23% from the prior-year quarter’s level to $114.6 million. The adjusted operating ratio fell 100 basis points to 90.8%.

Schneider National, Inc. Price, Consensus and EPS Surprise

 

Schneider National, Inc. Price, Consensus and EPS Surprise

Schneider National, Inc. price-consensus-eps-surprise-chart | Schneider National, Inc. Quote

 

Segmental Highlights

Truckload revenues (excluding fuel surcharge) for the first quarter of 2023 fell 2% year over year to $537 million. The downside was owing to lower network prices and volumes driven by moderating market conditions, partially offset by the impact of dedicated new business growth. Truckload revenue per truck per week was $4,027, down 4% year over year.

Truckload income from operations decreased 48% year over year to $62.6 million in the first quarter of 2023. Truckload segment operating ratio rose to 88.3% in the first quarter of 2023 from 78.2% in first-quarter 2022.

Intermodal revenues (excluding fuel surcharge) were $266.1 million, down 12% year over year, due to lower volume and price. Intermodal income from operations was $30 million, down 23% year over year. Intermodal operating ratio was 88.7% in the reported quarter, a sequential improvement of 160 basis points from the first quarter of 2022.

Logistics revenues (excluding fuel surcharge) for the first quarter of 2023 came in at $382.2 million, down 30% year over year owing to continued declines in spot rates, which unfavorably impacted revenue per order, and 7% lower brokerage volumes year over year.Logistics income from operations was $18.5 million, down 56% year over year, owing to lower net revenue per order and brokerage volumes, and reduced earnings from port dray
activity. The logistics operating ratio rose to 95.2% in the first quarter of 2023 from 92.3% in the year-ago reported quarter.

Liquidity

Schneider exited the first quarter with cash and cash equivalents of $389.8 million compared with $385.7 million at the end of December 2022. Long-term debt was $141.2 million at the end of the first quarter compared with $141.8 million at the end of December 2022.

2023 Outlook

Schneider now anticipates 2023 adjusted earnings per share in the range of $2.00-$2.20 (prior view: $2.15-$2.35). The Zacks Consensus Estimate of $2.15 lies within the guidance.

The company continues to expect 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 #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Transportation Companies

J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.

JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), and a 17% decline in revenue per load in Truckload (JBT). Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%.

JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.

Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel prices and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 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 $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.

Alaska Air Group, Inc. (ALK - Free Report) reported first-quarter 2023 loss of 62 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents. In the year-ago quarter, ALK incurred a loss of $1.33 per share.

ALK’s operating revenues of $ 2,196 million missed the Zacks Consensus Estimate of $2,202.5 million. The top line jumped 31% year over year, with passenger revenues accounting for 90.3% of the top line and increasing 31% owing to continued recovery in air-travel demand.

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