Schneider National Inc.’s SNDR third-quarter 2020 earnings (excluding 6 cents from non-recurring items) of 31 cents per share were in line with the Zacks Consensus Estimate. The bottom line dipped 3.1% year over year due to lower revenues.
Operating revenues of $1,135.7 million surpassed the Zacks Consensus Estimate of $1,122.1 million. However, the top line declined 4.1% year over year. Moreover, revenues (excluding fuel surcharge) decreased 1% to $1,062.7 million. Results were hampered by decline in truckload revenues.
Income from operations (adjusted) declined 3% from the prior-year quarter’s level to $76.9 million. Also, adjusted operating ratio (operating expenses as a percentage of revenues) deteriorated 20 basis points to 92.8%. Notably, 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
Truckload revenues (excluding fuel surcharge) slipped 11% to $460.2 million due to low capacity and shutdown of FTFM (First to Final Mile) operations. Average trucks (company trucks and owner-operated trucks) in the segment also fell 7.9% to 10,052. Further, revenue per truck per week in the segment dropped 3.2%. Truckload income from operations was $45.6 million in the reported quarter against loss of $12.5 million in the year-ago period. Moreover, operating ratio improved to 90.1% from 102.4% in the year-ago quarter.
Intermodal revenues (excluding fuel surcharge) were $248.4 million, flat on a year-over-year basis. Revenue per order declined 4% due to shorter length of haul as a result of higher Eastern volumes. Segmental income from operations declined 8.4% to $23 million mainly due to persistent network disruption. Additionally, intermodal operating ratio deteriorated to 90.7% in the third quarter from the prior-year quarter’s 89.9%.
Logistics revenues (excluding fuel surcharge) surged 20% to $284.4 million, primarily due to expanded brokerage volumes and increase in revenue per order. Logistics income from operations fell 8.1% on a year-on-year basis. Further, operating ratio in the segment deteriorated to 96.8% from 95.8% in the third quarter of 2019.
Schneider’s board approved a special dividend of $2 per share for holders of Class A and Class B shares. The dividend is payable to its shareholders on Nov 19, 2020, of record as of Nov 9.
Schneider, carrying a Zacks Rank #2 (Buy), exited the third quarter with cash and cash equivalents of $768.5 million compared with $551.6 million at the end of 2019. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Schneider estimates adjusted earnings in the range of $1.18-$1.22 for 2020. The mid-point of the guided range — $1.20 — lies below the Zacks Consensus Estimate of $1.21. Additionally, for the full year, net capital expenditures are forecast at approximately $250 million.
Let’s take a look at some other Zacks Transportation sector companies’ third-quarter earnings.
Southwest Airlines Co. LUV, carrying a Zacks Rank #3 (Hold), incurred a loss of $1.99 per share (excluding 3 cents from non-recurring items) in the third quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of $2.44. Moreover, operating revenues of $1,793 million surpassed the Zacks Consensus Estimate of $1,678.2 million.
Trinity Industries Inc TRN, carrying a Zacks Rank #2, reported third-quarter 2020 earnings (excluding 4 cents from non-recurring items) of 17 cents per share, massively surpassing the Zacks Consensus Estimate of 5 cents. Total revenues of $459.4 million also outperformed the Zacks Consensus Estimate of $443.8 million.
CSX Corporation CSX, carrying a Zacks Rank of 3, reported third-quarter 2020 earnings of 96 cents per share, surpassing the Zacks Consensus Estimate of 93 cents. However, total revenues of $2,648 million lagged the Zacks Consensus Estimate of $2,704.6 million.
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