Schneider National Beats Q2 Expectations; Shares Jump

Schneider National, Inc. (SNDR), a provider of transportation and logistics services, delivered better-than-expected second-quarter results and lifted its EPS guidance. Shares jumped 5.3% on the news closing at $22.28 on July 29.

Adjusted earnings for the quarter stood at $0.60 per share, increasing 131% year-over-year and surpassed the Street’s estimate of $0.41 per share.

Revenue climbed 32% to $1.36 billion compared to the prior-year period and beat analysts’ estimates of $1.25 billion.

Revenue (excluding fuel surcharge) for the company’s Truckload, Intermodal, and Logistics channels grew 5%, 25%, and 87%, respectively compared to the year-ago period. (See Schneider National stock charts on TipRanks)

Mark Rourke, CEO, and President of the company, said, “In the second quarter, we continued to utilize our diverse portfolio to capitalize upon opportunities presented by challenging market conditions…We anticipate the excess demand condition to continue through the remainder of the year.”

For the full year 2021, the company raised its adjusted earnings projections to be in the range of $1.85 – $1.95 per share, notably higher compared to the consensus estimate of $1.68 per share.

Additionally, owing to expected supply chain delays and higher equipment sales proceeds, the company’s net capital expenditures are revised downwards to fall in the range of $325 – $350 million.

Following the results, Cowen & Co. analyst Krish Sankar reiterated a Hold rating on the stock and lifted the price target to $30 (34.7% upside potential) from $29.

Sankar said, “SNDR is poised to benefit from anticipated tightening in the trucking market, and we like the company’s ongoing shift away from core truckload (TL) to a higher percentage of the asset-light business. Renewed focus with the shut-down of first to final mile (FTFM) should improve TL margins, and ongoing favorable trends in the rail business should help the company going forward.”

Overall, the stock has a Hold consensus rating based on 1 Buy, 1 Hold, and 2 Sells. The average Schneider National price target of $24 implies 7.7% upside potential to current levels. Shares have gained 8.9% year-to-date.

Also, TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Schneider National, with 29.7% of portfolios tracked by TipRanks increasing their exposure to SNDR stock over the past 30 days.