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Why Schneider (SNDR) is up Nearly 4% Since Q3 Earnings Release

Schneider's (SNDR) third-quarter earnings benefit from higher revenues across all the segments.

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This story originally appeared on Zacks

Shares of Schneider National SNDR have gained 3.9% since its third-quarter 2021 earnings release on Oct 28, following a better-than-expected performance and raised 2021 earnings guidance.

- Zacks

The company’s earnings of 62 cents per share beat the Zacks Consensus Estimate of 51 cents. The bottom line surged 100% from the year-ago quarter’s (which bore the brunt of coronavirus-led woes) levels.

Operating revenues of $1,444.5 million surpassed the Zacks Consensus Estimate of $1,394.6 million and rallied nearly 27.2% year over year. Revenues (excluding fuel surcharge) increased 25% to $1,330.1 million. The results benefited from higher revenues across all the segments.

Income from operations (adjusted) skyrocketed 100% from the prior-year quarter’s level to $153.7 million. Adjusted operating ratio (operating expenses, as a percentage of revenues) increased 440 basis points to 88.4%. Notably, lower the value of the ratio, the better.

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) increased 5% year over year to $484.4 million, primarily due to effective revenue and network management as well as dedicated growth. Average trucks (company trucks and owner-operated trucks) in the segment fell 8.7% year over year to 9,182. Revenue per truck per week in the segment increased 15% to $4,060 million. Truckload income from operations was $85.1 million in the reported quarter, up 87% year over year. Operating ratio improved to 82.4% in the third quarter from 90.1% in the year-ago period.

Intermodal revenues (excluding fuel surcharge) were $295.7 million, up 19% year over year owing to increased revenue per order and volume growth, mainly in the company’s Eastern operations. Revenue per order increased 20%. Segmental income from operations surged 99% to $45.7 million. Intermodal operating ratio improved to 84.5% in the quarter under review from 90.7% in the third quarter of 2020.

Logistics revenues (excluding fuel surcharge) surged 67% to $474.6 million, driven by the continued leverage of Schneider FreightPower, increased spot mix and supportive market conditions. Logistics income from operations soared more than 100% year over year to $22.1 million due to a rise in net revenue per order and higher volumes. Operating ratio in the segment improved to 95.3% from 96.8% in third-quarter 2020.

Liquidity

Schneider, carrying a Zacks Rank #2 (Buy) currently, exited the third quarter with cash and cash equivalents of $504.2 million compared with $395.5 million at the end of 2020. You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

2021 Outlook

Schneider anticipates an improved demand environment to sustain through the remainder of the year. Following strong second-quarter results and expectations of favorable market conditions, the company raised its adjusted earnings per share guidance for 2021 to $2.13-$2.17 compared with $1.85-$1.95 expected previously. The Zacks Consensus Estimate for the same is pegged at $2.07. Due to expectations of higher equipment sales proceeds and delays in equipment deliveries, the company reduced its net capital expenditure guidance for 2021 to $300 million compared with $325-$350 million estimated previously.

Sectorial Snapshot

Within the broader Transportation sector, Delta Air Lines DAL, J.B. Hunt Transport Services JBHT and Kansas City Southern KSU recently reported third-quarter 2021 results.

Delta reported third-quarter earnings (excluding $1.59 from non-recurring items) of 30 cents per share, outpacing the Zacks Consensus Estimate of 15 cents. Revenues of $9,154 million also beat the Zacks Consensus Estimate of $8,370.6 million.

J.B. Hunt reported third-quarter earnings of $1.88 per share, surpassing the Zacks Consensus Estimate of $1.77. Total operating revenues of $3144.8 million outperformed the Zacks Consensus Estimate of $3002.1 million.  

Kansas City Southern reported third-quarter earnings (excluding 31 cents from non-recurring items) of $2.02 per share, missing the Zacks Consensus Estimate of $2.07. Quarterly revenues of $744 million, however, surpassed the Zacks Consensus Estimate of $725.9 million.

 



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Schneider National, Inc. (SNDR): Free Stock Analysis Report

 

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