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Why Is Schneider National (SNDR) Up 3.3% Since Last Earnings Report?
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It has been about a month since the last earnings report for Schneider National (SNDR - Free Report) . Shares have added about 3.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Schneider National due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Schneider Lags on Q3 Earnings
Schneider reported disappointing third-quarter 2024 results, wherein earnings and revenues lagged the Zacks Consensus Estimate. Quarterly earnings per share of 18 cents missed the Zacks Consensus Estimate of 23 cents and declined 10% from the year-ago quarter.
Operating revenues of $1.31 billion missed the Zacks Consensus Estimate of $1.33 billion and fell 2.6% year over year. Revenues (excluding fuel surcharge) decreased 2% to $1.17 billion.
Income from operations (adjusted) moved down 7% from the prior-year quarter to $44.3 million. The adjusted operating ratio fell 20 basis points from the prior-year quarter to 96.2%.
Segmental Highlights
Truckload revenues (excluding fuel surcharge) for the third quarter of 2024 were $532.2 million, down 1% year over year due to lower Network volumes, partially offset by Dedicated growth. Truckload revenues per truck per week of $3,971 grew 2% year over year. Both Dedicated and Network revenues per truck per week increased year over year.
Truckload income from operations of $23.7 million decreased 3% year over year due to lower Network volumes, increased insurance expenses and reduced gains on sales of transportation equipment, offset by Dedicated growth. The Truckload operating ratio rose to 95.5% in the third quarter of 2024 from 95.4% in the year-ago quarter.
Intermodal revenues (excluding fuel surcharge) for the third quarter of 2024 were $264.7 million, up 1% year over year due to volume growth.
Intermodal income from operations for the third quarter of 2024 was $15.7 million, up 41% year over year. Apart from volume growth, internal cost actions, network optimization and improved dray productivity contributed to the increase in earnings. The Intermodal operating ratio fell to 94.1% from 95.8% in the year-ago quarter.
Logistics revenues (excluding fuel surcharge) of $313.7 million fell 4% year over year due to lower brokerage revenues per order.
Logistics income from operations of $7.6 million fell 11% year over year due to lower brokerage net revenues per order. The Logistics operating ratio rose to 97.6% from 97.4% in the year-ago quarter.
Liquidity & Cash Flow
Schneider exited the third quarter with cash and cash equivalents of $179 million compared with $103.2 million at the end of the prior quarter. The long-term debt was $124.7 million at the end of the reported quarter compared with $125.8 million at the end of the prior quarter.
SNDR generated $206.4 million of cash from operations in the third quarter. The free cash flow was $113.4 million in the reported quarter. Net capital expenditure was $93 million.
As of Sept. 30, 2024, SNDR repurchased 3.8 million Class B shares for $95.5 million under the program. As of Sept. 30, 2024, SNDR has returned $49.9 million as dividends to shareholders since the start of the year.
SNDR’s 2024 Outlook
Schneider anticipates 2024 adjusted earnings per share of 66-72 cents (prior view: 80-90 cents). The company now expects a net capital expenditure of $330 million (prior view: $300- $350 million). The full-year effective tax rate is expected to be 24%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -31% due to these changes.
VGM Scores
Currently, Schneider National has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Schneider National has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Schneider National belongs to the Zacks Transportation - Services industry. Another stock from the same industry, Avis Budget Group (CAR - Free Report) , has gained 4.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.
Avis Budget reported revenues of $3.48 billion in the last reported quarter, representing a year-over-year change of -2.4%. EPS of $6.65 for the same period compares with $16.78 a year ago.
Avis Budget is expected to post a loss of $1.03 per share for the current quarter, representing a year-over-year change of -114.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -270.5%.
Avis Budget has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Why Is Schneider National (SNDR) Up 3.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Schneider National (SNDR - Free Report) . Shares have added about 3.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Schneider National due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Schneider Lags on Q3 Earnings
Schneider reported disappointing third-quarter 2024 results, wherein earnings and revenues lagged the Zacks Consensus Estimate. Quarterly earnings per share of 18 cents missed the Zacks Consensus Estimate of 23 cents and declined 10% from the year-ago quarter.
Operating revenues of $1.31 billion missed the Zacks Consensus Estimate of $1.33 billion and fell 2.6% year over year. Revenues (excluding fuel surcharge) decreased 2% to $1.17 billion.
Income from operations (adjusted) moved down 7% from the prior-year quarter to $44.3 million. The adjusted operating ratio fell 20 basis points from the prior-year quarter to 96.2%.
Segmental Highlights
Truckload revenues (excluding fuel surcharge) for the third quarter of 2024 were $532.2 million, down 1% year over year due to lower Network volumes, partially offset by Dedicated growth. Truckload revenues per truck per week of $3,971 grew 2% year over year. Both Dedicated and Network revenues per truck per week increased year over year.
Truckload income from operations of $23.7 million decreased 3% year over year due to lower Network volumes, increased insurance expenses and reduced gains on sales of transportation equipment, offset by Dedicated growth. The Truckload operating ratio rose to 95.5% in the third quarter of 2024 from 95.4% in the year-ago quarter.
Intermodal revenues (excluding fuel surcharge) for the third quarter of 2024 were $264.7 million, up 1% year over year due to volume growth.
Intermodal income from operations for the third quarter of 2024 was $15.7 million, up 41% year over year. Apart from volume growth, internal cost actions, network optimization and improved dray productivity contributed to the increase in earnings. The Intermodal operating ratio fell to 94.1% from 95.8% in the year-ago quarter.
Logistics revenues (excluding fuel surcharge) of $313.7 million fell 4% year over year due to lower brokerage revenues per order.
Logistics income from operations of $7.6 million fell 11% year over year due to lower brokerage net revenues per order. The Logistics operating ratio rose to 97.6% from 97.4% in the year-ago quarter.
Liquidity & Cash Flow
Schneider exited the third quarter with cash and cash equivalents of $179 million compared with $103.2 million at the end of the prior quarter. The long-term debt was $124.7 million at the end of the reported quarter compared with $125.8 million at the end of the prior quarter.
SNDR generated $206.4 million of cash from operations in the third quarter. The free cash flow was $113.4 million in the reported quarter. Net capital expenditure was $93 million.
As of Sept. 30, 2024, SNDR repurchased 3.8 million Class B shares for $95.5 million under the program. As of Sept. 30, 2024, SNDR has returned $49.9 million as dividends to shareholders since the start of the year.
SNDR’s 2024 Outlook
Schneider anticipates 2024 adjusted earnings per share of 66-72 cents (prior view: 80-90 cents). The company now expects a net capital expenditure of $330 million (prior view: $300- $350 million). The full-year effective tax rate is expected to be 24%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -31% due to these changes.
VGM Scores
Currently, Schneider National has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Schneider National has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Schneider National belongs to the Zacks Transportation - Services industry. Another stock from the same industry, Avis Budget Group (CAR - Free Report) , has gained 4.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.
Avis Budget reported revenues of $3.48 billion in the last reported quarter, representing a year-over-year change of -2.4%. EPS of $6.65 for the same period compares with $16.78 a year ago.
Avis Budget is expected to post a loss of $1.03 per share for the current quarter, representing a year-over-year change of -114.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -270.5%.
Avis Budget has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.