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Here's Why You Should Avoid Schneider (SNDR) Stock for Now
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Schneider National, Inc. (SNDR - Free Report) is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option.
Below par performance in the Truckload (due to lower network price), Intermodal (due to lower volume and revenue per order) and Logistics (due to a decline in revenue per order impacted by lower spot prices and a decrease in brokerage volume) segments is hurting Schneider’s top line. Notably, Schneider's third-quarter 2023 revenues of $1,352 million lagged the Zacks Consensus Estimate of $1,396.5 million and fell 19.3% year over year. Revenues (excluding fuel surcharge) decreased 18% to $1,179.4 million. The downside was owing to weakness across all segments.
Additionally, the lower outlook for 2023 looks disappointing. Schneider’s board has decreased its 2023 adjusted earnings per share guidance in the range of $1.40-$1.45 (prior view: $1.75-$1.90).
Despite such headwinds, SNDR’s consistent efforts to reward its shareholders via dividends and share buybacks are encouraging. In February 2023, the company's board approved a 12.5% hike in its quarterly cash dividend to 9 cents per share on its Class A and Class B common stock. Such moves instill investors’ confidence in the stock.
In February 2023, SNDR announced the approval of a $150 million stock repurchase program. As of Sep 30, 2023, SNDR has repurchased shares worth $50.6 million under the program and paid $47.7 million in the form of dividends to shareholders year to date.
Such moves boost investors’ confidence and positively impact the company’s bottom line. So far this year, shares of Schneider have gained 6.8% compared with 2.3% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Currently, Schneider carries a Zacks Rank #5 (Strong Sell).
Wabtec has an expected earnings growth rate of 22.43% for the current year. WAB delivered a trailing four-quarter earnings surprise of 7.11%, on average.
The Zacks Consensus Estimate for WAB’s current-year earnings has improved 4.9% over the past 90 days. Shares of WAB have gained 26.1% year to date.
SkyWest's fleet-modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s current-year earnings has improved 38.9% over the past 90 days. Shares of SKYW have surged 209.7% year to date.
SKYW delivered a trailing four-quarter earnings surprise of 32.57%, on average.
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Here's Why You Should Avoid Schneider (SNDR) Stock for Now
Schneider National, Inc. (SNDR - Free Report) is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option.
Below par performance in the Truckload (due to lower network price), Intermodal (due to lower volume and revenue per order) and Logistics (due to a decline in revenue per order impacted by lower spot prices and a decrease in brokerage volume) segments is hurting Schneider’s top line. Notably, Schneider's third-quarter 2023 revenues of $1,352 million lagged the Zacks Consensus Estimate of $1,396.5 million and fell 19.3% year over year. Revenues (excluding fuel surcharge) decreased 18% to $1,179.4 million. The downside was owing to weakness across all segments.
Additionally, the lower outlook for 2023 looks disappointing. Schneider’s board has decreased its 2023 adjusted earnings per share guidance in the range of $1.40-$1.45 (prior view: $1.75-$1.90).
Despite such headwinds, SNDR’s consistent efforts to reward its shareholders via dividends and share buybacks are encouraging. In February 2023, the company's board approved a 12.5% hike in its quarterly cash dividend to 9 cents per share on its Class A and Class B common stock. Such moves instill investors’ confidence in the stock.
In February 2023, SNDR announced the approval of a $150 million stock repurchase program. As of Sep 30, 2023, SNDR has repurchased shares worth $50.6 million under the program and paid $47.7 million in the form of dividends to shareholders year to date.
Such moves boost investors’ confidence and positively impact the company’s bottom line. So far this year, shares of Schneider have gained 6.8% compared with 2.3% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Currently, Schneider carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the Zacks Transportation sector are Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) and SkyWest, Inc. (SKYW - Free Report) . Each stock presently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wabtec has an expected earnings growth rate of 22.43% for the current year. WAB delivered a trailing four-quarter earnings surprise of 7.11%, on average.
The Zacks Consensus Estimate for WAB’s current-year earnings has improved 4.9% over the past 90 days. Shares of WAB have gained 26.1% year to date.
SkyWest's fleet-modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s current-year earnings has improved 38.9% over the past 90 days. Shares of SKYW have surged 209.7% year to date.
SKYW delivered a trailing four-quarter earnings surprise of 32.57%, on average.