Core Insights - Schneider National, Inc. reported disappointing third-quarter 2024 results, with earnings per share (EPS) of 18 cents missing the Zacks Consensus Estimate of 23 cents and declining 10% year-over-year [1][2] - Operating revenues of $1.31 billion fell short of the Zacks Consensus Estimate of $1.33 billion and decreased 2.6% year-over-year [2] Financial Performance - Adjusted operating income decreased 7% year-over-year to $44.3 million, with an adjusted operating ratio of 96.2%, down 20 basis points from the prior year [2] - Truckload revenues (excluding fuel surcharge) were $532.2 million, down 1% year-over-year, while truckload revenues per truck per week increased by 2% to $3,971 [3][4] - Intermodal revenues (excluding fuel surcharge) increased by 1% year-over-year to $264.7 million, with income from operations rising 41% to $15.7 million [4][5] - Logistics revenues (excluding fuel surcharge) fell 4% year-over-year to $313.7 million, with income from operations decreasing 11% to $7.6 million [5][6] Liquidity and Cash Flow - As of the end of the third quarter, the company had cash and cash equivalents of $179 million, up from $103.2 million in the prior quarter, and long-term debt of $124.7 million [7] - Cash generated from operations was $206.4 million, with free cash flow at $113.4 million and net capital expenditure of $93 million [7] Shareholder Returns - The company repurchased 3.8 million Class B shares for $95.5 million and returned $49.9 million in dividends to shareholders since the start of the year [8] 2024 Outlook - Schneider anticipates adjusted EPS for 2024 to be between 66-72 cents, down from a prior estimate of 80-90 cents, with the Zacks Consensus Estimate at 83 cents [9] - Expected net capital expenditure for 2024 is $330 million, revised from a previous range of $300-350 million [9]

Core Insights - Schneider National reported revenue of $1.32 billion for the quarter ended September 2024, a decrease of 2.7% year-over-year, with EPS at $0.18 compared to $0.20 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $1.33 billion by 1.19%, and the EPS was 21.74% below the consensus estimate of $0.23 [1] Financial Performance Metrics - The consolidated operating ratio was reported at 96.7%, higher than the estimated 95.5% [3] - The intermodal operating ratio was 94.1%, slightly better than the average estimate of 94.8% [3] - The truckload operating ratio was 95.5%, compared to the average estimate of 93.6% [3] - The logistics operating ratio was 97.6%, above the estimated 96.3% [3] Revenue Breakdown - Fuel surcharge revenue was $138.10 million, below the estimated $148.35 million, representing a 20% decrease year-over-year [3] - Inter-segment eliminations revenue was reported at -$38.20 million, worse than the estimated -$35.02 million, but showed a 64% year-over-year increase [3] - Logistics revenue was $313.70 million, slightly above the estimate of $310.64 million, reflecting a 3.8% decrease year-over-year [3] - Other revenues were $105.20 million, significantly above the estimate of $78.66 million, marking a 34.2% year-over-year increase [3] - Excluding fuel surcharge, revenues totaled $1.18 billion, slightly below the estimated $1.19 billion, with a 0.2% decrease year-over-year [3] - Intermodal revenue was $264.70 million, below the estimate of $276.57 million, with a 0.7% year-over-year increase [3] - Truckload revenue was $532.20 million, below the estimated $555.61 million, reflecting a 0.6% decrease year-over-year [3] - Excluding fuel surcharge, network revenue was $185.20 million, below the estimate of $212.77 million, with an 11.9% year-over-year decrease [3] Stock Performance - Schneider National's shares have returned +5.8% over the past month, outperforming the Zacks S&P 500 composite's +0.7% change [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]

Financial Data and Key Metrics Changes - Revenues, excluding fuel surcharge, were $1.2 billion, essentially flat year-over-year [27] - Adjusted income from operations for Q3 was $44 million compared to $48 million a year ago [27] - Adjusted diluted earnings per share for Q3 was $0.18, down from $0.20 a year ago [27] - Increased auto liability insurance costs year-over-year represented a $0.04 headwind to earnings per share [28] - Net debt leverage stood at 0.15 times at the end of the quarter [36] Business Line Data and Key Metrics Changes Truckload - Truckload revenue, excluding fuel surcharge, was $532 million, 1% below the same period a year ago [29] - Truckload operating income was $24 million, down 3% year-over-year [29] - Truckload operating ratio was flat compared to the same period last year [29] Intermodal - Intermodal revenues, excluding fuel surcharge, were $265 million, 1% higher than Q3 2023 [30] - Intermodal operating income was $16 million, a $5 million increase compared to the same period last year [30] - Intermodal operating ratio improved by 170 basis points year-over-year [31] Logistics - Logistics revenue, excluding fuel surcharge, was $314 million, down 4% year-over-year [32] - Logistics operating income was $8 million compared to $9 million a year ago [32] - Logistics operating ratio was essentially flat compared to the same period last year [32] Market Data and Key Metrics Changes - The market showed signs of recovery, but the improved seasonality trend did not sustain from mid-August through quarter end [9] - There was double-digit percentage order growth year-over-year in the West and Mexico for Intermodal [19] - The East experienced offsets in growth due to a competitive truckload Intermodal market [19] Company Strategy and Development Direction - The company is focusing on structural improvements, customer experience, capital allocation optimization, and cost management [8] - The Dedicated segment is expected to continue high-level retention and growth opportunities [15][17] - The company aims to leverage its differentiated asset model in Intermodal to capitalize on market recovery [20] Management's Comments on Operating Environment and Future Outlook - Management noted that the freight market is recovering, with expectations for year-over-year earnings improvements in Q4 [36] - The company anticipates stabilization across most businesses and improved seasonality, particularly within truckload network and logistics [38] - Management expressed confidence in the opportunities ahead, particularly in the Dedicated segment [17] Other Important Information - Net CapEx in September was $154 million, below the prior year, due to enhanced asset productivity [33] - The company returned $50 million in dividends to shareholders, a 5% increase from the same period last year [36] - Full year 2024 updated net CapEx guidance is approximately $330 million [35] Q&A Session Summary Question: Full year guidance and market assumptions - Management expects improvement from Q3 to Q4 based on typical seasonality and secured project work [40][41] Question: Trucking segment operating income decline - The decline was attributed to lower network volumes, increased insurance costs, and moderating order tenders [42][43] Question: Dedicated and Network segments pricing trends - Pricing is leading volumes, with disciplined pricing strategies in place [46] Question: Operating supplies and insurance costs - Insurance costs are impacted by increased litigation and nuclear verdicts, while operating supplies are affected by revenue normalization [48][50] Question: Path to profitability for one-way operating - The company is focusing on minimizing volatility and improving rate restoration activities [56][57] Question: Customer discussions on potential pull forward ahead of tariffs - There have not been many discussions about additional pull forward related to tariffs at this time [60] Question: Margin expansion opportunities - Management believes capacity is exiting the marketplace, which could lead to improved margins [63] Question: Intermodal pricing expectations - It is too early to provide guidance on 2025 pricing, but there is a focus on remaining disciplined [67] Question: Competitive landscape and pricing dynamics - The company is observing a slow erosion of supply and is focused on rate restoration to be compensable for costs [86]

SCHNEIDER | --- | --- | --- | --- | |----------------------------------------------|-------|-------|-------| | | | | | | | | | | | THIRD QUARTER 2024 Investor | | | | | Presentation INNOVATIVE – RESILIENT – DRIVEN | | | | • BUSINESS OVERVIEW • STRATEGY • CAPITAL ALLOCATION • TECHNOLOGY AND INNOVATION • PEOPLE AND VALUES • SECULAR TRENDS • INVEST WITH SNDR • CURRENT RESULTS AND OUTLOOK • APPENDIX Presentation highlights 2 BUSINESS OVERVIEW SCHNEIDER 2023: by the numbers f OTO:O 9.4 MILLION number of times Sc ...

Financial Performance - Operating revenues for Q3 2024 were $1.3 billion, a decrease of 3% from $1.4 billion in Q3 2023[1] - Income from operations was $43.1 million, down 8% from $46.7 million in the same quarter last year[5] - Diluted earnings per share (EPS) for Q3 2024 was $0.17, compared to $0.20 in Q3 2023, representing a 15% decline[5] - Net income for the three months ended September 30, 2024, was $30.6 million, down from $35.6 million in the same period of 2023, representing a decline of 14.0%[28] - Adjusted income from operations for Q3 2024 was $44.3 million, compared to $47.6 million in Q3 2023[48] - Adjusted net income for the three months ended September 30, 2024, was $31.5 million, down from $36.3 million in 2023[53] - Adjusted EBITDA for the three months ended September 30, 2024, was $143.8 million, compared to $145.5 million in the same period of 2023[55] Revenue Breakdown - Truckload revenues (excluding fuel surcharge) decreased by 1% to $532.2 million, while average truck count for Dedicated increased by 4%[9] - Logistics revenues (excluding fuel surcharge) decreased by 4% to $313.7 million, primarily due to lower brokerage revenue per order[13] - The Truckload segment generated revenues of $532.2 million for the three months ended September 30, 2024, slightly down from $535.3 million in the same period of 2023[28] - The Logistics segment reported revenues of $313.7 million for the three months ended September 30, 2024, a decrease from $326.0 million in the same period of 2023[28] - Revenues (excluding fuel surcharge) for the three months ended September 30, 2024, were $1,177.6 million, slightly down from $1,179.4 million in 2023[45] Cash Flow and Capital Expenditures - Free cash flow year-to-date increased by $154.2 million compared to the same period in 2023[7] - Cash and cash equivalents increased to $179.0 million as of September 30, 2024, compared to $102.4 million as of December 31, 2023[25] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $486.6 million, slightly up from $486.1 million in the same period of 2023[26] - Net cash provided by operating activities for the three months ended September 30, 2024, was $206.4 million, an increase from $182.9 million in the same period of 2023, representing a growth of 12.8%[57] - Free cash flow for the nine months ended September 30, 2024, was $212.0 million, compared to $57.8 million in the same period of 2023, indicating a significant increase of 267.2%[57] - Net capital expenditures for the full year are now expected to be approximately $330 million[15] - Net capital expenditures for the three months ended September 30, 2024, were $(93.0) million, a decrease from $(130.2) million in the same period of 2023, showing an improvement of 28.6%[57] - Proceeds from the sale of property and equipment for the three months ended September 30, 2024, were $23.1 million, down from $34.5 million in the same period of 2023, a decrease of 33.5%[57] Operational Metrics - The average number of trucks in the Truckload segment was 10,397 for the three months ended September 30, 2024, compared to 10,677 in the same period of 2023[33] - The operating ratio for the Truckload segment was 95.5% for the three months ended September 30, 2024, compared to 90.5% in the same period of 2023[32] - The operating ratio for the Intermodal segment improved to 95.8% in Q3 2024 from 95.1% in Q3 2023[35] - Logistics segment operating ratio was reported at 97.6% for the three months ended September 30, 2024, compared to 97.4% in the same period of 2023[38] - Adjusted operating ratio for Q3 2024 improved to 96.2% from 96.0% in Q3 2023[50] Guidance and Future Outlook - Adjusted diluted EPS guidance for the full year has been updated to $0.66 - $0.72, down from the previous guidance of $0.80 - $0.90[15] - The company anticipates continued challenges in managing operational disruptions and inflationary pressures in the transportation industry[62] - The company is focused on maintaining key customer arrangements and managing disruptions due to external factors such as natural disasters and pandemics[62] - The company is committed to executing growth and diversification strategies while managing costs effectively[62] - The company does not undertake any obligation to publicly release revisions to its forward-looking statements after the date of the earnings release[63] Shareholder Actions - The company repurchased 3.8 million Class B shares for a total of $95.5 million under its stock repurchase program[8]

In its upcoming report, Schneider National (SNDR) is predicted by Wall Street analysts to post quarterly earnings of $0.23 per share, reflecting an increase of 15% compared to the same period last year. Revenues are forecasted to be $1.33 billion, representing a year-over-year decrease of 1.5%.The consensus EPS estimate for the quarter has undergone a downward revision of 3.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their ...

Core Viewpoint - Schneider National (SNDR) is facing financial instability due to increased operating expenses and weak liquidity, making it less attractive for investors [1]. Financial Performance - The Zacks Consensus Estimate for current-quarter earnings has been revised downward by 4.2% over the past 60 days, with a 1.2% decrease for the current year [2]. - Schneider has a poor earnings surprise history, having outperformed the Zacks Consensus Estimate only once in the last four quarters, with an average miss of 17.5% [2]. Operating Expenses - Total operating expenses increased by 2% in Q2 2024 compared to Q2 2023, primarily driven by rising labor costs [3]. - Labor costs, which account for 28% of total operating expenses, rose by 8.2% year over year [4]. Liquidity Concerns - By the end of Q2 2024, Schneider reported cash and cash equivalents of $103.2 million, which is less than its long-term debt of $125.8 million, indicating liquidity issues [4]. Industry Context - Schneider operates in an industry with a Zacks Industry Rank of 181 out of 251, placing it in the bottom 28% of Zacks Industries [3].

Industry Overview - The trucking industry is showing signs of renewed strength, indicating a potential shift towards a more bullish environment despite previous turbulence [1] - Recent commentary from major trucking companies reflects cautious optimism regarding ongoing sector challenges, suggesting that freight demand is beginning to recover [1] Freight Demand and Seasonality - The return of "normal seasonality" in freight demand is a significant development, indicating stabilization after erratic patterns over the past year [2] - This seasonality is occurring at a lower baseline, suggesting a gradual recovery rather than a sharp rebound, which may take time to manifest [2][11] - The tightening capacity due to carrier exits is leading to rising spot rates, creating a more favorable landscape for trucking companies as peak season approaches [10][12] Company Insights: Schneider National - Schneider National has reported a decline in revenue and earnings per share compared to the same quarter last year, reflecting challenging market conditions [3] - The company is focusing on cost-containment strategies and operational efficiency to navigate the slow recovery, aiming to improve margins [4] - Schneider National's stock has experienced a 25% growth year-to-date, indicating potential for further recovery as the peak season unfolds [5] Company Insights: Werner Enterprises - Werner Enterprises has also reported a decline in revenue and earnings per share but remains optimistic about its pricing power in a tightening market [6][8] - The company's commitment to long-term customer relationships and innovative customer service is expected to help navigate challenging market conditions [7] - Despite a stock price decline of 11% year-to-date, Werner could benefit from increased volumes during peak season and improved pricing power as capacity tightens [8][12] Market Outlook - The potential for a strong peak season is gaining traction, driven by increased freight demand and a return to normal seasonality patterns [9][11] - As demand increases and capacity remains tight, trucking companies could command better pricing, improving margins and driving positive investor sentiment [12][13] - The trucking industry is positioned for potential growth, making it an intriguing prospect for investors seeking opportunities in a recovering market [13]

Schneider National, Inc.'s (SNDR) bottom line has been benefiting from its consistent shareholder-friendly initiatives and a reduction in capital expenditures. However,reduced earnings per share (EPS) guidance looks disappointing and raises concerns about the stock. Factors Boosting SNDR's Growth Schneider's consistent measures to reward its shareholders through dividends and share buybacks are appreciative. During 2023, SNDR paid dividends of $63.6 million and repurchased shares worth $66.9 million. During ...

Schneider National (SNDR) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 16.67%. A quarter ago, it was expected that this trucking company would post earnings of $0.13 per share when it actually produced earnings of $0.11, delivering a surprise of -15.38%. Over the last four quarter ...