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Schneider (SNDR) Q4 Earnings Lag Estimates, Revenue Beat
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Schneider National, Inc. (SNDR - Free Report) fourth-quarter 2023 earnings per share (EPS) of 16 cents missed the Zacks Consensus Estimate of 21 cents and declined 75% from the year-ago quarter’s levels. Operating revenues of $1,371.7 million outpaced the Zacks Consensus Estimate of $1,366.1 million but fell 12.1% year over year. Revenues (excluding fuel surcharge) decreased 11% to $1,194.8 million.
Income from operations (adjusted) fell 78% from the prior-year quarter’s level to $32.6 million. The adjusted operating ratio fell 830 basis points from the prior-year quarter’s level to 97.3%.
Schneider National, Inc. Price, Consensus and EPS Surprise
Truckload revenues (excluding fuel surcharge) for the fourth quarter of 2023 grew 1% year over year to $550.7 million. The upside was due to the impact of dedicated organic and acquisitive growth, largely offset by lower pricing in the network. The actual figure was lower than our estimate of $566 million.
Truckload network volumes improved, and prices stabilized sequentially through the quarter. Truckload revenues per truck per week was $4,057, down 3% year over year. Truckload income from operations decreased 73% year over year to $18.8 million in the fourth quarter of 2023, owing to lower network pricing, increased claims cost, a net loss from the sale of equipment and inflationary costs. Truckload operating ratio was 96.6% in the reported quarter compared with 87.4% in the fourth quarter of 2022.
Intermodal revenues (excluding fuel surcharge) were $260.6 million, down 17% year over year, due to 17% lower revenue per order. The actual figure was lower than our estimate of $278.1 million.
Intermodal income from operations was $6.2 million, down 88% year over year, owing to lower pricing and volumes, increased empty repositioning and claims cost. Intermodal operating ratio was 97.6% in the fourth quarter of 2023 compared with 83.3% in the year-ago quarter.
Logistics revenues (excluding fuel surcharge) for the fourth quarter of 2023 came in at $342.1 million, down 20% year over year, owing to decreased revenue per order and lower brokerage volume year over year. The actual figure was higher than our estimate of $301.5 million.
Logistics income from operations was $6.1 million, down 75% year over year, owing to lower net revenue per order, partially due to the lack of promotional revenues in the quarter, as well as increased claims cost. Logistics operating ratio was 98.2% in the fourth quarter of 2023 compared with 94.3% in the year-ago quarter.
Liquidity
Schneider exited the fourth quarter with cash and cash equivalents of $102.4 million compared with $58.5 million at the third-quarter end. Long-term debt was $197.6 million at the end of the fourth quarter compared with $218.5 million at the prior-quarter end.
2024 Outlook
Schneider anticipates 2024 adjusted EPS in the range of $1.15-$1.30. The Zacks Consensus Estimate is currently pegged at $1.67.
The company expects net capital expenditures between $400 million and $450 million. The full-year effective tax rate is expected to be around 24.5%.
Currently, Schneider carries a Zacks Rank #5 (Strong Sell).
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2023 EPS of $1.47 missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
JBHT’s total operating revenues of $3,303.70million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.
Delta Air Lines (DAL - Free Report) has reported fourth-quarter 2023 EPS (excluding $1.88 from non-recurring items) of $1.28, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported fourth-quarter 2023 EPS (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13,626 million beat the Zacks Consensus Estimate of $13,546.8 million. The top line increased 9.9% year over year due to upbeat air-travel demand. This was driven by a 10.9% rise in passenger revenues (which accounted for 91.1% of the top line) to $12,421 million. Almost 41,779 passengers traveled on UAL flights in the fourth quarter.
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Schneider (SNDR) Q4 Earnings Lag Estimates, Revenue Beat
Schneider National, Inc. (SNDR - Free Report) fourth-quarter 2023 earnings per share (EPS) of 16 cents missed the Zacks Consensus Estimate of 21 cents and declined 75% from the year-ago quarter’s levels. Operating revenues of $1,371.7 million outpaced the Zacks Consensus Estimate of $1,366.1 million but fell 12.1% year over year. Revenues (excluding fuel surcharge) decreased 11% to $1,194.8 million.
Income from operations (adjusted) fell 78% from the prior-year quarter’s level to $32.6 million. The adjusted operating ratio fell 830 basis points from the prior-year quarter’s level to 97.3%.
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 fourth quarter of 2023 grew 1% year over year to $550.7 million. The upside was due to the impact of dedicated organic and acquisitive growth, largely offset by lower pricing in the network. The actual figure was lower than our estimate of $566 million.
Truckload network volumes improved, and prices stabilized sequentially through the quarter. Truckload revenues per truck per week was $4,057, down 3% year over year. Truckload income from operations decreased 73% year over year to $18.8 million in the fourth quarter of 2023, owing to lower network pricing, increased claims cost, a net loss from the sale of equipment and inflationary costs. Truckload operating ratio was 96.6% in the reported quarter compared with 87.4% in the fourth quarter of 2022.
Intermodal revenues (excluding fuel surcharge) were $260.6 million, down 17% year over year, due to 17% lower revenue per order. The actual figure was lower than our estimate of $278.1 million.
Intermodal income from operations was $6.2 million, down 88% year over year, owing to lower pricing and volumes, increased empty repositioning and claims cost. Intermodal operating ratio was 97.6% in the fourth quarter of 2023 compared with 83.3% in the year-ago quarter.
Logistics revenues (excluding fuel surcharge) for the fourth quarter of 2023 came in at $342.1 million, down 20% year over year, owing to decreased revenue per order and lower brokerage volume year over year. The actual figure was higher than our estimate of $301.5 million.
Logistics income from operations was $6.1 million, down 75% year over year, owing to lower net revenue per order, partially due to the lack of promotional revenues in the quarter, as well as increased claims cost. Logistics operating ratio was 98.2% in the fourth quarter of 2023 compared with 94.3% in the year-ago quarter.
Liquidity
Schneider exited the fourth quarter with cash and cash equivalents of $102.4 million compared with $58.5 million at the third-quarter end. Long-term debt was $197.6 million at the end of the fourth quarter compared with $218.5 million at the prior-quarter end.
2024 Outlook
Schneider anticipates 2024 adjusted EPS in the range of $1.15-$1.30. The Zacks Consensus Estimate is currently pegged at $1.67.
The company expects net capital expenditures between $400 million and $450 million. The full-year effective tax rate is expected to be around 24.5%.
Currently, Schneider carries a Zacks Rank #5 (Strong Sell).
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) fourth-quarter 2023 EPS of $1.47 missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
JBHT’s total operating revenues of $3,303.70million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.
Delta Air Lines (DAL - Free Report) has reported fourth-quarter 2023 EPS (excluding $1.88 from non-recurring items) of $1.28, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported fourth-quarter 2023 EPS (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13,626 million beat the Zacks Consensus Estimate of $13,546.8 million. The top line increased 9.9% year over year due to upbeat air-travel demand. This was driven by a 10.9% rise in passenger revenues (which accounted for 91.1% of the top line) to $12,421 million. Almost 41,779 passengers traveled on UAL flights in the fourth quarter.