Send me real-time posts from this site at my email
Zacks

Schneider (SNDR) Segmental Strength Aids Growth, Costs Ail

Schneider National, Inc.’s SNDR top line is benefiting from strength across its Truckload, Intermodal and Logistics segments, which recorded a year-over-year revenue increase of 20%, 22% and 21%, respectively, in second-quarter 2022.

The surge in Truckload revenues was primarily owing to Midwest Logistics Systems revenues, effective yield management and dedicated new business growth. The Intermodal segment is benefiting from favorable revenue management actions, while the Logistics unit is thriving on the back of increased revenue per order and higher volumes within the company’s brokerage offering, including increased contribution from the Power Only service offering and incremental port dray revenues.  

Further, Schneider National anticipates an excess demand condition with a gradual supply-chain improvement. Due to the bullish demand scenario, management raised the 2022 earnings per share (EPS) forecast. Schneider now anticipates 2022 adjusted EPS in the range of $2.60-$2.70 (previous view: $2.55-$2.70).

On the flip side, rising operating expenses, mainly due to high purchased transportation costs and salaries, wages and benefits, can hurt the bottom line. Total operating expenses increased 27.1% year over year in second-quarter 2022, with a 19.9% surge in purchased transportation costs and a 23.6% rise in salaries, wages and benefits expenses.

Zacks Rank and Stocks to Consider

Currently, Schneider carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader Zacks Transportation sector are GATX Corporation GATX, Ryder System, Inc. R and Teekay Tankers Ltd. TNK, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GATX Corporation has an expected earnings growth rate of 17.8% for the current year. GATX delivered a trailing four-quarter earnings surprise of 28.9%, on average.

The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days.

Ryder has an expected earnings growth rate of 56.3% for the current year. R delivered a trailing four-quarter earnings surprise of 30.2%, on average.

The Zacks Consensus Estimate for Ryder’s current-year earnings has improved 4.2% over the past 90 days.

Teekay Tankers has an expected earnings growth rate of 140.1% for the current year. TNK delivered a trailing four-quarter earnings surprise of 46.1%, on average. Teekay Tankers has a long-term expected growth rate of 3%.

The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have soared 142% over the past year.


FREE Report: The Metaverse is Exploding! Don’t You Want to Cash In?

Rising gas prices. The war in Ukraine. America's recession. Inflation. It's no wonder why the metaverse is so popular and growing every day. Becoming Spider Man and fighting Darth Vader is infinitely more appealing than spending over $5 per gallon at the pump. And that appeal is why the metaverse can provide such massive gains for investors. But do you know where to look? Do you know which metaverse stocks to buy and which to avoid? In a new FREE report from Zacks' leading stock specialist, we reveal how you could profit from the internet’s next evolution. Even though the popularity of the metaverse is spreading like wildfire, investors like you can still get in on the ground floor and cash in. Don't miss your chance to get your piece of this innovative $30 trillion opportunity - FREE.

>>Yes, I want to know the top metaverse stocks for 2022>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Ryder System, Inc. (R): Free Stock Analysis Report
 
Teekay Tankers Ltd. (TNK): Free Stock Analysis Report
 
GATX Corporation (GATX): Free Stock Analysis Report
 
Schneider National, Inc. (SNDR): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue