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 ...

Schneider National, Inc. (SNDR) is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option. Let's delve deeper. Southward Earnings Estimate Revision:The Zacks Consensus Estimate for second-quarter 2024 earnings has been revised 26.9% downward over the past 90 days. For 2024, the consensus mark for earnings has moved 25.2% south in the same time frame. The bearish alterations in estimate revisions underscore a notable decline in brokers' confidence in the stoc ...

Given the way analysts feel about Schneider National right now, this huge implied volatility could mean there's a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected. Implied volatility shows how much movement the market is expecting in the future. Options ...

Core Insights - Schneider National, Inc. is experiencing challenges due to a freight recession but remains optimistic about future recovery [1][5] - The company has cut its full-year earnings guidance significantly, reflecting ongoing industry difficulties [6] Financial Performance - In Q1 2024, Schneider reported earnings of $0.11, missing the Zacks Consensus estimate of $0.13 for the third consecutive quarter [3] - Operating revenues decreased by 8% to $1.3 billion from $1.4 billion year-over-year [3] - Truckload revenues, excluding fuel surcharges, increased slightly to $538.1 million, while intermodal revenues fell by 7% to $247.2 million [4][3] - Logistics revenues dropped 15% to $324.9 million due to lower revenue per order and decreased brokerage volume [4] Guidance and Analyst Expectations - Schneider has revised its full-year earnings guidance to a range of $0.85 to $1.00, down from $1.15 to $1.30 [6] - Analysts have also lowered their estimates, with the Zacks Consensus dropping to $0.92 from $1.13 in the past month, indicating a 33% decline from last year's earnings of $1.37 [6] - Despite current challenges, analysts project a significant earnings rebound in 2025, expecting a 79.8% increase to $1.65 [6] Stock Performance and Shareholder Actions - Schneider's shares have declined by 12.3% in 2024 due to the guidance cut and ongoing freight recession [7] - The company has initiated a $150 million stock repurchase program, having repurchased 3.1 million Class B shares for $79.2 million as of March 31, 2024 [10] - Schneider also pays a dividend with a current yield of 1.7%, returning $16.5 million to shareholders year-to-date [10]

Financial Data and Key Metrics - In Q1 2024, the company experienced positive contract price renewal closures in the low single digits for the truckload network for the first time in six quarters [8] - Dedicated revenue per truck per week was flat year-over-year and down 4% sequentially from Q4 2023, primarily due to severe weather in January [9] - Average Dedicated truck count grew year-over-year by 773 units and 80 units sequentially from Q4 2023 [9] - Truckload network revenue per truck per week contracted 10% year-over-year in Q1 2024, with most of the change due to depressed rates [16] - Intermodal segment volumes were flat year-over-year, with revenue per order down 7% compared to Q1 2023 [17] - Intermodal margins improved 40 basis points sequentially from Q4 2023 [17] - Logistics segment revenues declined 15% year-over-year in Q1 2024, primarily due to decreased revenue per order and overall volume declines [22] - Adjusted income from operations for Q1 2024 was down $85 million or 74% from the prior year [47] - Adjusted diluted earnings per share for Q1 2024 was $0.11 compared to $0.55 in the prior year [47] - EBITDA for Q1 2024 was $131 million, in line with Q4 2023 [47] Business Segment Performance - In the Asset-Based truckload segment, revenues excluding fuel surcharge were flat year-over-year in Q1 2024 [21] - Truckload earnings for Q1 2024 were lower year-over-year, primarily due to network price and volume pressures [21] - Intermodal segment revenues, excluding fuel surcharge, were down 7% year-over-year in Q1 2024 [22] - Intermodal earnings were down year-over-year, primarily due to lower revenue per order and higher MT repositioning costs [22] - Non-asset logistics segment revenues declined 15% year-over-year in Q1 2024 [22] - Logistics operating margins eroded over 300 basis points compared to Q1 2023, but only 10 basis points sequentially from Q4 2023 [46] Market Performance - The East region in the Intermodal segment is the most competitive region with the truck alternative [17] - Growth in the West, Transcon, and Mexico offset declines in the East [17][27] - The company is seeing signs of inventory destocking concluding, although shippers remain cautious about restocking [23] Company Strategy and Industry Competition - The company is focused on cost reduction actions, asset efficiency improvements, and returning operating segments to long-term margin targets [15] - Dedicated now represents 62% of truckload tractors, with a strong pipeline and new business awards for Q2 and Q3 2024 [44] - The company is leveraging its multimodal platform to quickly pivot when the market improves [43] - The company is encouraged by the Union Pacific's announcement to reduce transit time by two days on the largest freight lane from LA to Chicago [45][54] Management Commentary on Operating Environment and Future Outlook - The company is assessing signs that market conditions are beginning to moderate, but has not seen enough to consider the market at an inflection point [8] - The company expects improving yields in network businesses, volume growth in intermodal and logistics, and continued truck growth in dedicated [24] - The company updated its adjusted diluted earnings per share guidance range for 2024 to $0.85 to $1, assuming a full-year effective tax rate of 25% [52] - Net CapEx expectations for 2024 are adjusted to be in the range of $350 million to $400 million [52] Other Important Information - The company recognized five Schneider Hall of Fame Driver associates who surpassed 4 million safe driving miles [19] - The company paid nearly $17 million in dividends during Q1 2024, 5% above the same period in 2023 [49] - The company generated strong operating cash flow of $98 million during Q1 2024, with net debt leverage at 0.4 times [49] Q&A Session Summary Question: Intermodal allocation season and Western market dynamics [26] - The company is about 40% through the allocation season and remains disciplined in selling into areas with network differentiation [26] - Growth in the West, Transcon, and Mexico has helped overcome difficulties in the East [27][28] Question: Guidance and market recovery confidence [29] - The company sees positive signs in demand and pricing, but expects moderate capacity reductions and demand improvement [30][31] - Potential disruptions in competing rail services in the East could impact the market [32] Question: Contract renewal trends and asset-based solutions [33][35] - Low single-digit contract renewals were referenced for the truck network [33] - Customers are increasingly favoring asset-based solutions, which benefits the company's brokerage and power-only offerings [35] Question: Intermodal growth and competitive dynamics [37][72] - The company sees differentiation in intermodal due to service reliability and sustainability [37] - The company expects intermodal to grow faster than over-the-road transportation [64] Question: Equipment sales and guidance [66] - The company assumes flat or zero gain on equipment sales, with a $30 million headwind [66] Question: Dedicated market stability [70] - The dedicated market is considered stable, with growth focused on the industrial side of the economy [70] Question: Seasonality and market conditions [77][115] - The company expects a return to typical seasonality, with moderate improvements in market conditions [77][115] - Weather events in Q1 2024 had a quicker impact on spot pricing and carrier costing, suggesting some market tightening [116] Question: Intermodal margin improvement [122] - Margin improvement in intermodal was driven by network healing, driver utilization, and reduced empty miles [122] Question: Power-only business performance [124] - Power-only business provides higher net revenue per order and is more contract-based, contributing to margin resilience [125] Question: Free cash flow and CapEx [130] - The company generated positive operating cash flow of nearly $100 million in Q1 2024, with CapEx adjustments reflecting efficiency improvements [131]