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Why Is Schneider National (SNDR) Up 10.3% Since Last Earnings Report?
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A month has gone by since the last earnings report for Schneider National (SNDR - Free Report) . Shares have added about 10.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Schneider National due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Earnings Beat at Schneider National in Q1
Schneider National first-quarter 2020 earnings (excluding 1 cent from non-recurring items) of 24 cents per share surpassed the Zacks Consensus Estimate by 5 cents. Moreover, the bottom line increased 14.3% on a year-over-year basis. Also, operating revenues dropped 6.3% to $1,119.1 million and lagged the Zacks Consensus Estimate. Moreover, revenues (excluding fuel surcharge) fell 6% to $1,016.1 million. Results were hampered by lower volumes, downside in fuel surcharge revenues and coronavirus-led disruptions.
Income from operations (on a reported basis) increased 7% from the prior-year quarter’s level to $54.9 million owing to elimination of FTFM operating losses, cost-cut initiatives and lower fuel costs. Adjusted income from operations increased 4% to $53.7 million in the March-end quarter. Also, adjusted operating ratio (operating expenses as a percentage of revenues) improved 50 basis points to 94.7%. Notably, lower the value of the ratio the better.
Segmental Highlights
Truckload revenues (excluding fuel surcharge) slipped 12% to $469.4 million. Average trucks (company trucks and owner-operated trucks) in the segment also fell 11.8% to 10,207. Further, revenue per truck per week for the segment dropped 1.3%. This downside was mainly due to shutdown of FTFM operations and unfavorable pricing. Truckload income from operations was $36.6 million in the reported quarter, up 58%. Moreover, adjusted operating ratio improved to 92.2% from 95.6% in the year-earlier quarter.
Intermodal revenues (excluding fuel surcharge) were $261.2 million, flat with the first quarter 2019. Revenue per order declining 4%, primarily due a higher mix of shorter length of haul volume. Segmental income from operations decreased 18% to $16.3 million as a result increased rail purchased transportation costs. Additionally, intermodal operating ratio deteriorated to 93.2% in the first quarter from the prior year’s 91.6%.
Logistics revenues (excluding fuel surcharge) dropped 2% to $239.6 million, primarily due to a customer in-sourcing activity in the segment’s import/export operations. However, net revenue compression primarily induced a 59% decline in segmental income from operations to $4.2 million. Further, operating ratio in the segment deteriorated to 98.2% from 95.8% in the first quarter of 2020.
Liquidity
Schneider, carrying a Zacks Rank #4 (Sell), exited the first quarter with cash and cash equivalents of $600.6 million compared with $551.6 million at the end of 2019.
Suspends 2020 EPS Guidance
Due to uncertainties related to the magnitude and duration of COVID-19 crisis, Schneider has suspended its full year 2020 EPS guidance.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted -23.73% due to these changes.
VGM Scores
Currently, Schneider National has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Schneider National has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Schneider National (SNDR) Up 10.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Schneider National (SNDR - Free Report) . Shares have added about 10.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Schneider National due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Earnings Beat at Schneider National in Q1
Schneider National first-quarter 2020 earnings (excluding 1 cent from non-recurring items) of 24 cents per share surpassed the Zacks Consensus Estimate by 5 cents. Moreover, the bottom line increased 14.3% on a year-over-year basis. Also, operating revenues dropped 6.3% to $1,119.1 million and lagged the Zacks Consensus Estimate. Moreover, revenues (excluding fuel surcharge) fell 6% to $1,016.1 million. Results were hampered by lower volumes, downside in fuel surcharge revenues and coronavirus-led disruptions.
Income from operations (on a reported basis) increased 7% from the prior-year quarter’s level to $54.9 million owing to elimination of FTFM operating losses, cost-cut initiatives and lower fuel costs. Adjusted income from operations increased 4% to $53.7 million in the March-end quarter. Also, adjusted operating ratio (operating expenses as a percentage of revenues) improved 50 basis points to 94.7%. Notably, lower the value of the ratio the better.
Segmental Highlights
Truckload revenues (excluding fuel surcharge) slipped 12% to $469.4 million. Average trucks (company trucks and owner-operated trucks) in the segment also fell 11.8% to 10,207. Further, revenue per truck per week for the segment dropped 1.3%. This downside was mainly due to shutdown of FTFM operations and unfavorable pricing. Truckload income from operations was $36.6 million in the reported quarter, up 58%. Moreover, adjusted operating ratio improved to 92.2% from 95.6% in the year-earlier quarter.
Intermodal revenues (excluding fuel surcharge) were $261.2 million, flat with the first quarter 2019. Revenue per order declining 4%, primarily due a higher mix of shorter length of haul volume. Segmental income from operations decreased 18% to $16.3 million as a result increased rail purchased transportation costs. Additionally, intermodal operating ratio deteriorated to 93.2% in the first quarter from the prior year’s 91.6%.
Logistics revenues (excluding fuel surcharge) dropped 2% to $239.6 million, primarily due to a customer in-sourcing activity in the segment’s import/export operations. However, net revenue compression primarily induced a 59% decline in segmental income from operations to $4.2 million. Further, operating ratio in the segment deteriorated to 98.2% from 95.8% in the first quarter of 2020.
Liquidity
Schneider, carrying a Zacks Rank #4 (Sell), exited the first quarter with cash and cash equivalents of $600.6 million compared with $551.6 million at the end of 2019.
Suspends 2020 EPS Guidance
Due to uncertainties related to the magnitude and duration of COVID-19 crisis, Schneider has suspended its full year 2020 EPS guidance.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted -23.73% due to these changes.
VGM Scores
Currently, Schneider National has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Schneider National has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.