Schneider's (SNDR) Q4 Earnings Beat Estimates, Rise Y/Y
Schneider National SNDR fourth-quarter earnings of 76 cents per share beat the Zacks Consensus Estimate of 65 cents. The bottom line surged 72.7% from the year-ago quarter’s levels.
Operating revenues of $1,574.8 million surpassed the Zacks Consensus Estimate of $1,524.7 million and rallied nearly 24.5% year over year as economic activities gained pace. Revenues (excluding fuel surcharge) increased 21% to $1,444.8 million. The results benefited from higher revenues across all the segments.
Income from operations (adjusted) surged 67% from the prior-year quarter’s level to $177 million. Adjusted operating ratio (operating expenses, as a percentage of revenues) increased 340 basis points to 87.7%. Notably, the lower the value of the ratio, the better.
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 11% year over year to $523.6 million, primarily due to effective revenues and network management as well as new dedicated business growth. Average trucks (company trucks and owner-operated trucks) in the segment fell 5.3% year over year to 9,250. Revenues per truck per week in the segment increased 17.7% to $4,521 million. Truckload income from operations was $87.7 million in the reported quarter, up 35% year over year. The operating ratio improved to 83.3% in the fourth quarter from 86.2% in the year-ago period.
Intermodal revenues (excluding fuel surcharge) were $317.6 million, up 18% year over year owing to increased revenues per order. Revenues per order increased 20%. Segmental income from operations surged more than 100% to $54.6 million, primarily driven by strong revenue management and network execution. The intermodal operating ratio improved to 82.8% in the quarter under review from 90.8% in fourth-quarter 2020.
Logistics revenues (excluding fuel surcharge) surged 46% to $547.5 million, driven by growth of the Schneider FreightPower platform and its agility in a dislocated freight market. Logistics income from operations surged 73% year over year to $37.4 million due to volume growth and technology-optimized net revenue management. The operating ratio in the segment improved to 93.2% from 94.2% in fourth-quarter 2020.
Liquidity
Schneider, carrying a Zacks Rank #2 (Buy), exited the fourth quarter with cash and cash equivalents of $244.8 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.
2022 Outlook
Schneider anticipates an excess demand condition with gradual supply chain improvement.
Schneider anticipates 2022 adjusted earnings per share in the range of $2.35-$2.55. The midpoint of the guidance ($2.45) is higher than the Zacks Consensus Estimate of $2.36.
The full-year effective tax rate is expected to be approximately 25%.
Net capital expenditures are anticipated to be approximately $450 million.
Sectorial Snapshot
Within the broader Transportation sector, J.B. Hunt Transport Services JBHT, United Airlines UAL and Delta Air Lines DAL recently reported fourth-quarter 2021 results.
J.B. Hunt Transport Services, sporting a Zacks Rank #1 (Strong Buy), reported earnings of $2.28 per share in fourth-quarter 2021. The figure surpassed the Zacks Consensus Estimate of $1.99. The bottom line surged 58.3% year over year on the back of higher revenues across all segments
J.B. Hunt’s operating revenues of $3,497 million also outperformed the Zacks Consensus Estimate of $3,287.8 million. The top line increased 27.7% year over year. Total operating revenues, excluding fuel surcharges, rose 21.7% year over year.
United Airlines, carrying a Zacks Rank #5, incurred a loss (excluding 39 cents from non-recurring items) of $1.60 per share in fourth-quarter 2021, narrower than the Zacks Consensus Estimate of a loss of $2.23. The amount of loss narrowed 77.1% year over year.
United Airlines’ operating revenues of $8,192 million also outperformed the Zacks Consensus Estimate of $7,930.9 million. The top line surged more than 100% year over year, with passenger revenues contributing 84% to the top line and surging 185.4% to $6,878 million.
Delta, carrying a Zacks Rank #5, reported fourth-quarter 2021 earnings (excluding 86 cents from non-recurring items) of 22 cents per share, outpacing the Zacks Consensus Estimate of 15 cents. The bottom line improved from the year-ago quarter’s loss of $2.53 per share. Strong holiday travel demand and favorable pricing aided the December quarter’s results.
Delta’s revenues came in at $9,470 million, beating the Zacks Consensus Estimate of $9,232.1 million and soaring more than 100% year over year. The upside can be attributed to people resorting to air travel during the holidays.
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