Bear of the Day: Schneider National (SNDR)

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]