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Schneider (SNDR) Beats on Q1 Earnings, Ups 2021 Outlook

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Schneider National Inc.’s SNDR first-quarter 2021 earnings of 31 cents per share beat the Zacks Consensus Estimate of 29 cents. The bottom line also increased 29.2% year over year due to improvement in operating ratio.

Operating revenues of $1,228.6 million surpassed the Zacks Consensus Estimate of $1,156.2 million and also climbed 9.8% year over year. Moreover, revenues (excluding fuel surcharge) increased 12% to $1,138.4 million. Results benefited from higher intermodal and logistics revenues.

Income from operations (adjusted) ascended 42% from the prior-year quarter’s level to $76.2 million. Also, adjusted operating ratio (operating expenses as a percentage of revenues) rose 140 basis points to 93.3%. 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 and EPS Surprise

Schneider National, Inc. price-consensus-eps-surprise-chart | Schneider National, Inc. Quote

Segmental Highlights

Truckload revenues (excluding fuel surcharge) slipped 4% to $451.7 million due to low network capacity and adverse weather conditions. Average trucks (company trucks and owner-operated trucks) in the segment also fell 6.5% to 9,539. Revenue per truck per week in the segment increased 4.1% to $3,706. Truckload income from operations was $38.3 million in the reported quarter, up 5% from the year-ago quarter’s levels. Moreover, operating ratio increased to 91.5% from 92.2% in the year-ago quarter.

Intermodal revenues (excluding fuel surcharge) were $255.8 million, up 7% year over year. Revenue per order increased 6%. Segmental income from operations surged 23% to $20 million primarily due to yield management actions and Eastern network growth. Additionally, intermodal operating ratio rose to 92.2% in the first quarter from 93.2% in the year-ago quarter.

Logistics revenues (excluding fuel surcharge) surged 49% to $355.9 million primarily due to expanded brokerage volumes and increase in revenue per order. Logistics income from operations soared more than 100% on a year-on-year basis. Further, operating ratio in the segment improved to 95.5% from 98.2% in the first quarter of 2021.

Liquidity

Schneider, carrying a Zacks Rank #3 (Hold), exited the first quarter with cash and cash equivalents of $472.2 million compared with $395.5 million at the end of 2020.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Revised 2021 Outlook

For 2021, Schneider now anticipates adjusted earnings per share to be between $1.60 and $1.70 (previous guidance: $1.45 and $1.60). The Zacks Consensus Estimate is pegged at $1.59.

Additionally, the company estimates net capital expenditures in the range of $375-$425 million (previous guidance: approximately $425 million) for the year.

Sectorial Snapshot

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

Delta, carrying a Zacks Rank #4 (Sell), incurred a loss (excluding $1.70 from non-recurring items) of $3.55 per share. The figure was wider than the Zacks Consensus Estimate of a loss of $3.08. Total revenues of $4,150 million topped the Zacks Consensus Estimate of $3,821.3 million.

J.B. Hunt, a Zacks #3 ranked player, reported earnings of $1.37 per share. The figure beat the Zacks Consensus Estimate of $1.18. Total operating revenues of $2,618.1 million also surpassed the Zacks Consensus Estimate of $2,486.9 million.

Kansas City Southern, carrying a Zacks Rank of 3, reported earnings (excluding 23 cents from non-recurring items) of $1.91 per share. The figure missed the Zacks Consensus Estimate of $2. Quarterly revenues of $706 million lagged the Zacks Consensus Estimate of $714.3 million.

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