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Schneider (SNDR) Rides on Low Costs Amid Coronavirus Woes

We recently issued an updated report on Schneider National, Inc. SNDR.
Schneider National witnessed its second-quarter 2020 revenues decline 15%, thanks to coronavirus-led disruptions. Low freight volumes are weighing on the company’s performance.

Decline in truckload (major revenue generating segment) revenues due to lower volumes and unfavorable pricing is a concern. Notably, revenues in the unit dropped 16% year over year in the second quarter.

Meanwhile, low fuel costs, cost-cutting initiatives and the closure of Schneider National’s unprofitable FTFM operations in 2019 is helping the company. Evidently, income from operations (on a reported basis) increased 29% during the second quarter.

Schneider National, Inc. Price

Schneider National, Inc. Price

Schneider National, Inc. price | Schneider National, Inc. Quote

Despite coronavirus-related adversities, the company's logistics revenues (excluding fuel surcharge) inched up 2% in the June quarter to $230.9 million, primarily owing to higher volumes. Also, margins improved 180 basis points sequentially from first-quarter levels. The company expects its Intermodal margins to improve during the third quarter.

Zacks Rank & Other Stocks to Consider

Schneider National currently carries a Zacks Rank #2 (Buy).

Investors interested in the in the Zacks Transportation sector may also consider Landstar System LSTR ), Knight-Swift Transportation Holdings KNX and United Parcel Service UPS, each sporting a Zacks Rank #1 ( Strong Buy) at present .You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Landstar System, Knight-Swift and UPS have rallied more than 16%, 14% and 65%, respectively, in the past three months. 

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