Here's Why You Should Avoid Schneider National (SNDR) Now
Schneider National, Inc. SNDR is being hurt by lower network price and weak guidance.
Let’s delve deeper.
Southward Earnings Estimate Revisions: The Zacks Consensus Estimate for current-quarter earnings has been revised 11.5% downward over the past 60 days. For the current year, the consensus mark for earnings has moved 22% south in the same time frame. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
Weak Zacks Rank and Style Score: Schneider National currently carries a Zacks Rank #5 (Strong Sell). Moreover, SNDR’s current Momentum Style Score of D shows its short-term unattractiveness.
Other Headwinds: Schneider's second-quarter 2023 revenues of $1,346.5 million lagged the Zacks Consensus Estimate of $1,459 million and fell 23% year over year. Revenues (excluding fuel surcharge) decreased 20% to $1,190.9 million. The downside was owing to weakness across all segments.
Truckload revenues (excluding fuel surcharge) for the second quarter of 2023 fell 7% year over year due to lower network price driven by market conditions. Intermodal revenues (excluding fuel surcharge) plunged 22% year over year on the back of lower volume and revenue per order.
Logistics revenues (excluding fuel surcharge) dipped 34% year over year. This was stemmed from a decline in revenue per order impacted by lower spot prices and a 10% decrease in brokerage volume.
Schneider’s board has lowered its adjusted earnings per share guidance for 2023 in the range of $1.75 - $1.90 (prior view: $2.00 - $2.20). Lower outlook might have been due to the currently challenged freight environment.
Stocks to Consider
Some better-ranked stocks for investors interested in the Zacks Transportation sector are GATX Corporation GATX and Triton International Limited TRTN.
GATX, which presently carries a Zacks Rank #2 (Buy), has strengthened its railcar leasing operations. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For third-quarter and full-year 2023, GATX’s earnings are expected to register 36.6% and 14.3% growth, respectively, on a year-over-year basis.
Triton, which currently carries a Zacks Rank #2, is benefiting from its consistent efforts to reward shareholders through dividends and share repurchases.
Triton has an impressive liquidity position. Its current ratio (a measure of liquidity) was 3.83 at the end of second-quarter 2023. A current ratio of more than 1 often indicates that the company will be easily paying off its short-term obligations.
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GATX Corporation (GATX) : Free Stock Analysis Report
Triton International Limited (TRTN) : Free Stock Analysis Report
Schneider National, Inc. (SNDR) : Free Stock Analysis Report
