Schneider National, Inc.’s (SNDR) second-quarter 2024 earnings of 21 cents per share surpassed the Zacks Consensus Estimate of 18 cents but declined 53.3% from the year-ago quarter. Operating revenues of $1.316 billion missed the Zacks Consensus Estimate of $1.370 billion and fell 2.2% year over year. Revenues (excluding fuel surcharge) decreased 2% to $1.167 billion.
Income from operations (adjusted) fell 51% from the prior-year quarter’s level to $52.3 million. The adjusted operating ratio fell 450 basis points from the prior-year quarter’s level to 95.5%.
Mark Rourke, president and chief executive officer at Schneider, stated, “The second quarter showed continued progress toward market equilibrium as evidenced by moderate seasonality and a tightening spot market.”
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) in the second quarter of 2024 were $540.3 million, up from $7.6 million from the year-ago reported quarter. Results were driven by organic and acquisitive growth in dedicated, partially offset by lower network pricing and volumes year over year.
Truckload revenue per truck per week was $3,933, down 2% year over year. Truckload income from operations was $30.7 million in the second quarter of 2024, down 53% year over year owing to lower network pricing and volumes, as well as decreased gains on the sale of transportation equipment. Truckload operating ratio was 94.3% in the second quarter of 2024 compared with 87.8% in the second quarter of 2023.
Intermodal revenues (excluding fuel surcharge) in the second quarter of 2024 were $253.1 million, down 3% year over year, owing to lower revenue per order compared with the year-ago quarter.
Intermodal income from operations in the second quarter of 2024 was $14.6 million, down 38% year over year, owing to lower revenue per order, partially offset by network management and operational and dray cost improvements. Intermodal operating ratio was 94.2% in the second quarter of 2024 compared with 90.9% in the second quarter of 2023.
Logistics revenues (excluding fuel surcharge) in the second quarter of 2024 were $318.8 million, down 7% year over year owing to decreased revenue per order and 4% lower brokerage volume compared with the prior-year quarter.
Logistics income from operations in the second quarter of 2024 was $11.2 million, down 13% year over year, owing to lower brokerage volumes and decreased net revenue per order. Logistics operating ratio was 96.5% in the second quarter of 2024 compared with 96.3% in the second quarter of 2023.
Liquidity & Cash Flow
Schneider exited the second quarter with cash and cash equivalents of $103.2 million compared with $67.3 million at the end of the prior quarter. Long-term debt was $125.8 million at the end of the reported quarter compared with $96.6 million at the first-quarter end.
SNDR generated $182.6 million of cash from operations in the second quarter. Free cash flow totaled $112.9 million in the reported quarter. Net capital expenditures were $69.7 million.
2024 Outlook
Schneider now anticipates 2024 adjusted earnings per share in the range of $0.80-$0.90 (prior view: $0.85-$1.00). The Zacks Consensus Estimate is currently pegged at 86 cents.
The company expects net capital expenditures between $300 and $350 million (prior view: $350- $400 million).
Zacks Rank and Price Performance
Currently, Schneider carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past three months, shares of SNDR have gained 23.5% against the industry’s decline of 5.7%.
Image Source: Zacks Investment Research
Performances of Other Transportation Companies
Delta Air Lines DAL reported second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share, which marginally missed the Zacks Consensus Estimate of $2.37. Earnings decreased 11.9% on a year-over-year basis. Apart from high costs, the carrier blamed the discounting pressure at the low end of the market, which hurt its pricing power, for the disappointing performance.
Revenues of $16.65 billion surpassed the Zacks Consensus Estimate of $16.25 billion and increased 6.9% year over year, driven by upbeat air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $15.41 billion, up 5.4% year over year.
J.B. Hunt Transport Services, Inc. (JBHT)reported disappointing second-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate.
JBHT’s earnings of $1.32 per share missed the Zacks Consensus Estimate of $1.51 and declined 27% year over year.
JBHT’s total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $3.03 billion and fell 7% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.The downfall was owing to a 5% decrease in gross revenue per load in Intermodal (JBI) and a decline in load volume of 25% in Integrated Capacity Solutions (ICS), 9% in Truckload (JBT), and 9% in Dedicated Contract Services (DCS). These were partially offset by the 5% revenue growth of Final Mile Services (FMS), primarily driven by new contracts implemented over the past year, and a 5% increase in revenue per load in ICS.
United Airlines Holdings, Inc. (UAL)reported second-quarter 2024 earnings per share (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. Earnings decreased 17.7% on a year-over-year basis.
Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year due to upbeat air-travel demand. This was driven by a 5.2% rise in passenger revenues (which accounted for 91.2% of the top line) to $13.680 billion. Almost 44,375 passengers traveled on UAL flights in the second quarter, up 5.8% year over year.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
Schneider National, Inc. (SNDR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
