Schneider National, Inc. Just Missed Earnings - But Analysts Have Updated Their Models
Shareholders might have noticed that Schneider National, Inc. (NYSE:SNDR) filed its third-quarter result this time last week. The early response was not positive, with shares down 8.4% to US$22.06 in the past week. Revenues were in line with forecasts, at US$1.1b, although statutory earnings per share came in 17% below what the analysts expected, at US$0.25 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Schneider National
Taking into account the latest results, the current consensus from Schneider National's twelve analysts is for revenues of US$4.81b in 2021, which would reflect a decent 8.2% increase on its sales over the past 12 months. Statutory earnings per share are predicted to bounce 62% to US$1.52. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.78b and earnings per share (EPS) of US$1.47 in 2021. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target was unchanged at US$26.79, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Schneider National analyst has a price target of US$30.00 per share, while the most pessimistic values it at US$20.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Schneider National shareholders.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Schneider National's growth to accelerate, with the forecast 8.2% growth ranking favourably alongside historical growth of 4.2% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 8.8% per year. Schneider National is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Schneider National following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$26.79, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Schneider National going out to 2022, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Schneider National that you should be aware of.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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