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Schneider (SNDR) Rides on Segmental Growth, Expenses Ail

Schneider National, Inc. SNDR benefits from strength across its Truckload and Intermodal segments. Shares of Schneider have gained 8.4% over the past three months against the 3.8% decline of the industry it belongs to.

Zacks Investment Research
Zacks Investment Research


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The company recently reported third-quarter 2022 earnings of 70 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line rose 13% from the year-ago quarter’s levels.

Operating revenues of $1,675.3 million lagged the Zacks Consensus Estimate of $1,725.4 million but improved 16% year over year. Revenues (excluding fuel surcharge) increased 8% to $1,441.8 million.

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

How is Schneider Doing?

Solid performance in the Truckload and Intermodal segments is driving Schneider National’s top line, which increased 18% and 13%, respectively, year over year in third-quarter 2022. The surge in Truckload revenues was owing to Midwest Logistics Systems’ revenues, effective yield management and dedicated new business growth. The Intermodal segment is benefiting from an improvement in revenues per order.

The company’s sound liquidity position is encouraging enough. Its cash and equivalents at the end of the third quarter totaled $349.7 million, higher than the long-term debt of $140.1 million. This indicates that it has enough cash to pay off its debt obligations.

On the flip side, rising operating expenses, mainly due to high purchased transportation costs and salaries, wages and benefits, can hurt the bottom line. Total operating expenses increased 18.5% year over year in third-quarter 2022, with a 6.2% rise in purchased transportation costs and a 22.6% jump in salaries, wages and benefits expenses.

For 2022, Schneider now expects net capital expenditures to be $475 million (prior view: $500 million). Though capex guidance has been reduced, the updated earnings per share are not that encouraging. Schneider now anticipates 2022 adjusted earnings per share in the range of $2.60-$2.65 (previous view: $2.60-$2.70).

Zacks Rank & Stocks to Consider

Currently, Schneider carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks from the broader Zacks Transportation sector are Air Transport Services Group ATSG, Ryder Systems R and Teekay Tankers Ltd. (TNK), each currently carrying a Zacks Rank #2 (Buy).

ATSG has an expected earnings growth rate of 34.34% for the current year. ATSG delivered a trailing four-quarter earnings surprise of 17.78%, on average.

The Zacks Consensus Estimate for ATSG’s current-year earnings has improved 5.2% over the past 90 days. Shares of ATSG have gained 7.9% over the past year.

Ryder has an expected earnings growth rate of 67.12% for the current year. R delivered a trailing four-quarter earnings surprise of 30.13%, on average.

The Zacks Consensus Estimate for R’s current-year earnings has improved 6.9% over the past 90 days. Shares of R have gained 12.7% over the past year.

Teekay Tankers has an expected earnings growth rate of 214.91% for the current year. TNK delivered a trailing four-quarter earnings surprise of 42.23%, on average. Teekay Tankers has a long-term expected growth rate of 3%.

The Zacks Consensus Estimate for TNK’s current-year earnings has improved 95% over the past 90 days. Shares of TNK have soared 190% over the past year.

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