Latest news with #SchneiderNational
Yahoo
03-05-2025
- Business
- Yahoo
Tariffs trim Schneider National's 2025 growth expectations
Multimodal transportation provider Schneider National said it still expects to see growth and operational improvement across its three businesses this year, just at a more subdued pace given the tariff overhang. So far, the changing trade landscape hasn't produced any dramatic shifts in customer demand. Rates across its truckload segment have increased by low- to mid-single-digits this year. However, the carrier is taking less volume from some shippers when the rate isn't desirable. It now expects rate and volume growth in the segment to be more muted moving forward. (Schneider is approximately one-third of the way through its TL bid season.) The Green Bay, Wisconsin-based company reported first-quarter adjusted earnings per share of 16 cents on Thursday, 2 cents ahead of the consensus estimate and 5 cents higher year over year. The increase was primarily due to the December acquisition of dedicated carrier Cowan Systems. Schneider (NYSE: SNDR) cut its full-year adjusted EPS outlook to 75 cents to $1, a 17% reduction (at the midpoint) from its initial guidance. The updated outlook bracketed the current consensus estimate of 89 cents. The company expects continued y/y improvement in results the rest of the year. 'In constructing our revised outlook for the full year, we considered the current trade policy and increased economic uncertainty and the resulting moderating impact on both price and volume,' said Schneider CFO Darrell Campbell on a Thursday call. He said the company will look to offset the impact from a weaker economy with continued tractor utilization initiatives and cost takeouts. The company has identified more than $40 million in cost reductions, many of which are tied to AI-enabled efficiency programs. Schneider's TL unit saw a 14% y/y revenue increase to $614 million, mostly due to the acquisition. Average trucks in service increased 13% y/y, and revenue per truck per week (a utilization metric) was up 3% y/y. Rate-per-mile improvement in both the dedicated and one-way segments helped push utilization higher. Schneider continues to cull the one-way fleet as it views the current economics of this portion of the TL market as 'uninvestable.' The unit reported a 95.9% operating ratio (inverse of operating margin), 130 basis points better y/y and 60 bps better than the fourth quarter. Guidance calls for the TL segment to see 'more moderate pricing improvements' and lower volume growth than previously contemplated. Net fleet growth is expected within dedicated, but management flagged some customer churn in the near term that it expects to be more than offset by new business wins. It said customer retention in dedicated is still in the low-90% range. Schneider said cost synergies from the Cowan deal should be $20 million to $30 million over time. The company's intermodal segment reported a 5% y/y increase in revenue to $260 million. Loads were up 4%, and revenue per load (excluding fuel surcharges) was up 1%. This was the third consecutive quarter that yields were up y/y. Management said intermodal bid season is producing an increase in volume allocations but yields remain largely flat. Looking forward, it expects a continuation in volume growth alongside moderate pricing improvement. The new business wins are expected to offset any tariff-related demand destruction. Roughly 15% to 25% of Schneider's intermodal volume is tied to imports, mostly to the West Coast and Mexico. The company said its cross-border business is compliant with the United States-Mexico-Canada Agreement and largely unimpacted by tariffs currently. Intermodal reported a 94.7% OR in the quarter, 250 bps better y/y. Roughly 10% of Schneider's container fleet is idle, which is lower than some peers. It estimates it could grow volumes by 20% to 25% without adding equipment. The unit turned each container nearly four times on average in the quarter, a 5% y/y improvement. (Incremental capacity can be captured as container turns improve.) It doesn't see the need to remove capacity currently as it believes longer-term intermodal fundamentals are very favorable. It also said there is a possibility that a sharp falloff in imports could create a bit of a near-term supply shock, although that is not Schneider's base case. 'The conditions are ripe for a bullwhip. It appears that imports may be dropping faster than consumer demand, and a lull in shipping could be the catalyst that removes additional capacity from the market,' said Jim Filter, group president of transportation and logistics. He said quick trade resolution could provide 'an abrupt restart to imports with less capacity than there is today.' Logistics revenue was up 2% y/y to $332 million. The Cowan acquisition offset legacy volume declines and weaker revenue per load. The unit reported a 97.6 OR, 70 bps better y/y. A decline in volumes with improved net revenue per order is the guidance for the logistics segment. Schneider reeled in its net capex plan to a range of $325 million to $375 million from $400 million to $450 million previously. It will continue to allocate capital to fund dedicated and intermodal tractor purchases while maintaining normal replacement cycles for trailers. It said it would have a more asset-light approach in dedicated, utilizing owner-operators when it can. Shares of SNDR were up 1% at 2:21 p.m. EDT on Thursday compared to the S&P 500, which was up 1.2%. More FreightWaves articles by Todd Maiden: Losses continue to mount at Heartland Express XPO sees runway to higher margins even if downcycle lingers ArcBest says LTL pricing not under attack The post Tariffs trim Schneider National's 2025 growth expectations appeared first on FreightWaves. 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Yahoo
01-05-2025
- Business
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Schneider National's Q1, outlook not as bad as feared
Schneider National announced first-quarter earnings ahead of analysts' expectations on Thursday but lowered its outlook for 2025. Schneider (NYSE: SNDR) reported adjusted earnings per share of 16 cents, 2 cents ahead of the consensus estimate and 5 cents higher year over year. The y/y increase was driven by the December acquisition of Cowan Systems. The adjusted EPS number excluded 1 cent per share in acquisition costs. Full-year guidance was cut to a range of 75 cents to $1 from the initial guide of 90 cents to $1.20 (a 17% reduction at the midpoints). However, the new outlook bracketed the 89-cent consensus estimate at the time of the print. (Analysts have been lowering estimates in recent weeks to reflect potential demand destruction from a protracted trade war.) 'While the current macro-economic environment is leading to declining consumer sentiment and increasing shipper uncertainty, we expect to deliver improved year over year results through 2025, although tempered versus our previous outlook,' said Schneider CFO Darrell Campbell in a news release. Schneider's truckload segment reported a 14% y/y revenue increase to $614 million. The bulk of the increase was tied to the acquisition, but revenue per truck per week in both its dedicated and one-way segments increased by approximately 2% y/y as rate per mile increased. Like many carriers in the industry, Schneider has worked to cull its one-way fleet to improve utilization. Revenue per truck per week, however, was off 4% sequentially for the entire TL fleet from the fourth quarter to the seasonally weakest first quarter. The unit reported a 95.9% operating ratio (inverse of operating margin), 130 basis points better y/y and 60 bps better than the fourth quarter. The company's intermodal segment reported a 5% y/y increase in revenue and 250 bps of OR improvement to 94.7%. Schneider also saw 70 bps of margin improvement in its logistics business. 'Revenues excluding fuel surcharge of nearly $1.3 billion were the second highest for a first quarter in our history, and all our reportable segments improved revenues, earnings, and margin year over year. As the quarter progressed, increasing economic uncertainty lowered consumer sentiment and market expectations,' said Schneider President and CEO Mark Rourke in a news release. Shares of SNDR were off 0.5% at 9:49 a.m. EDT on Thursday compared to the S&P 500, which was up 1%. Schneider will host a conference call to discuss first-quarter results at 10:30 a.m. EDT on Thursday. More FreightWaves articles by Todd Maiden: XPO sees runway to higher margins even if downcycle lingers ArcBest says LTL pricing not under attack Landstar quantifies suspected fraud event, delays Q1 report The post Schneider National's Q1, outlook not as bad as feared appeared first on FreightWaves.
Yahoo
28-03-2025
- Business
- Yahoo
Truckload earnings estimates cut as Q1 draws to a close
Susquehanna Financial Group cut estimates for trucking and logistics companies heading into the first-quarter earnings season. Uncertainty around tariffs and retailers building inventories in response has turned 'macroenthusiasm into pessimism,' analyst Bascome Majors told clients in a Wednesday report. 'We're cautious into spring as the truckload cycle likely gets worse before it gets better,' Majors said, noting that 'pending tariffs have caused a broad 'wait & see' approach for retail and industrial shippers alike.' He said key industry data points are closing the quarter 'with a whimper into the critical spring bid season.' Majors noted shippers have their own margin concerns as they navigate a changing trade landscape, which he believes will 'weigh on carriers' rate/margin gains in bid season.' Retailers are still working their pricing models to determine the right balance between shielding consumers from price hikes and protecting their own gross margins. Majors selectively lowered first-quarter earnings numbers, primarily targeting TL carriers, as the seasonally strongest month of the period – March – will likely disappoint. Broader changes were made to the full year, which produced knock-on effects to 2026 estimates.'1Q is seasonally weaker, but we fear the exit rate of spot rates into the most critical months of the annual contract bid season poses some risk to annual pricing that will drive margins in 2H25 and into 1H26,' Majors said. Majors cut his Knight-Swift Transportation (NYSE: KNX) earnings-per-share estimate by 16% for the first quarter, with Schneider National (NYSE: SNDR) taking a 9% haircut. Truckload carriers, including Werner Enterprises (NASDAQ: WERN), saw low-double-digit to midteen estimate cuts for full-year 2025 given the slow start to the year, with flow-through effects impacting the 2026 numbers by a similar amount. 'Reflecting a shakier cyclical backdrop for TL/intermodal/trade and contractual bid season, we're exercising more caution in 2Q toward both demand and pricing, which flows through to 2H and 2026 estimate reductions.'Across his trucking, intermodal and logistics coverage, which includes brokers, numbers sit 5% to 15% below consensus for 2025 and 5% to 25% below for 2026. (Majors has not issued quarterly previews for the less-than-truckload carriers and railroads that he follows.) Truck broker Landstar System (NASDAQ: LSTR) is the only company for which Majors' first-quarter number sits above other Wall Street estimates. He raised the estimate by 4% given recent outperformance in the flatbed market, which accounts for 30% of Landstar's revenue. However, he quantified the near-term strength in that market as 'transitory.' He pointed to the potential for a supply shock next year as changes in trade policy will push new Class 8 tractor prices higher and as equipment prebuying is curbed as the new administration works to nix planned changes to nitrogen oxide emissions standards. 'In 2026, we could see truckload/intermodal demand grow while the class 8 fleet shrinks, fueling a stair-step lift in TL/IM price and margins after 2025's emerging disappointment.' His call for the 2025 bid season, which is based on channel checks and recent public carrier commentary signaling low-single-digit rate increases, is for contractual rate renewals to be positive. Majors downgraded multimodal provider J.B. Hunt Transport Services (NASDAQ: JBHT) to 'neutral' on Wednesday, cutting full-year 2025 and 2026 estimates by 5% and 7%, respectively. He said recent tariff-driven import activity has been behind the 7% y/y increase in North American intermodal container volumes so far this year. He expects contractual bid season to be fruitful on major headhaul lanes off the West Coast, which could be mostly offset by softness on backhaul lanes. The call is for intermodal rates to 'exit 2025 on a slight winning streak, with more meaningful opportunity for recovery in 2026.' 'We see a challenged 2025, with the largest earnings growth % at TL carriers vs. depressed 2024 troughs, but see strong growth for 2026 coming off the 2025 bridge year as our estimates reflect a more measured improvement to demand, pricing and margins across the industry.'More FreightWaves articles by Todd Maiden: FedEx prepping LTL unit ahead of spinoff Yellow's 325-door California terminal fetches $55M Roadrunner adds new lanes to long-haul network The post Truckload earnings estimates cut as Q1 draws to a close appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
23-03-2025
- Business
- Yahoo
Schneider National's (NYSE:SNDR) investors will be pleased with their notable 52% return over the last five years
It hasn't been the best quarter for Schneider National, Inc. (NYSE:SNDR) shareholders, since the share price has fallen 21% in that time. On the bright side the share price is up over the last half decade. Unfortunately its return of 30% is below the market return of 138%. Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. The end of cancer? These 15 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Schneider National's earnings per share are down 4.3% per year, despite strong share price performance over five years. By glancing at these numbers, we'd posit that the decline in earnings per share is not representative of how the business has changed over the years. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics. The modest 1.6% dividend yield is unlikely to be propping up the share price. In contrast revenue growth of 4.4% per year is probably viewed as evidence that Schneider National is growing, a real positive. It's quite possible that management are prioritizing revenue growth over EPS growth at the moment. You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image). Schneider National is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. You can see what analysts are predicting for Schneider National in this interactive graph of future profit estimates. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Schneider National the TSR over the last 5 years was 52%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! Schneider National shareholders are up 7.3% for the year (even including dividends). Unfortunately this falls short of the market return. If we look back over five years, the returns are even better, coming in at 9% per year for five years. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 1 warning sign for Schneider National that you should be aware of. Of course Schneider National may not be the best stock to buy. So you may wish to see this free collection of growth stocks. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
17-03-2025
- Business
- Yahoo
The intermodal supply chain leader you need to know: Michael Baumgardt
Schneider Senior Vice President named a Supply & Demand Chain Executive 2025 "Pro to Know" GREEN BAY, Wis., March 17, 2025--(BUSINESS WIRE)--In today's complex transportation environment, shippers are looking for flexible solutions that get their products to consumers reliably, safely and cost-effectively. For those striving to enhance their supply chains, Intermodal transportation is a vital component of any multimodal approach. At Schneider National, Inc. (NYSE: SNDR), a premier multimodal provider of transportation, intermodal and logistics services, Senior Vice President and General Manager of Intermodal, Michael Baumgardt, is leading the charge in delivering those customer-centric solutions. Michael's proficiency in analyzing customer freight needs and driving efficiencies makes him a sought-after expert. Most importantly, his focus on collaborating with customers to help them achieve their business goals has led to innovative solutions that address common challenges in the industry, such as the need for seamless and timely border crossings and more sustainable transportation options. It's no surprise then that Michael has been recognized as one of the 2025 Pros to Know by Supply & Demand Chain Executive, highlighting his significant contributions in the supply chain sector. Just a few of Michael's recent key achievements include: Enabled new Intermodal service in Mexico: Michael oversaw the launch of an expanded, continuous rail service between Mexico, Texas and the Southeastern United States, reducing delays and freight loss while increasing payload and savings by 10% or more because of Schneider's lightweight, company-owned equipment and specialized heavy-haul permits. Strengthened reliable rail routes: By enhancing relationships with rail providers, Michael ensured customers have the broadest scope of intermodal solutions. As the only fully asset-based carrier with Union Pacific (UP), CSX and CPKC connections, Schneider pairs with the rail providers to optimize routes and strategize further innovation. Implemented responsible, sustainable transportation solutions: Michael assisted in operationalizing Schneider's battery electric fleet in Southern California, leading to more than six million zero emission miles being driven using Freightliner eCascadias – so far. "Our customers have high expectations – and rightfully so. They need to get their freight on time, every time. That's why I'm proud to work for an organization that consistently lives up to its promises," said Michael. "I see this recognition as a team win. It reflects our successful efforts to prioritize customers' business objectives, deploy flexible solutions supported by technical innovations and find ways to ensure mutual growth and collaboration." Michael's 23 years at Schneider have equipped him with extensive knowledge and experience, enabling him to turn industry challenges into opportunities. His leadership has driven Schneider's growth and long-term success for its customers. "This recognition is a testament to Michael's exceptional dedication, innovative thinking and unwavering commitment to excellence in our industry," said Schneider Executive Vice President and Group President of Transportation and Logistics Jim Filter. "He has been instrumental in expanding our Intermodal capabilities, strengthening our rail relationships and demonstrating servant leadership. This award is so well-deserved, and we all look forward to his continued success within our organization." To learn more about Schneider's Intermodal offerings, visit > Shippers > Intermodal. About Schneider Schneider is a premier multimodal provider of transportation, intermodal and logistics services. Offering one of the broadest portfolios in the industry, Schneider's solutions include Regional and Long-Haul Truckload, Expedited, Dedicated, Bulk, Intermodal, Brokerage, Warehousing, Supply Chain Management, Port Logistics and Logistics Consulting. Schneider has been safely delivering superior customer experiences and investing in innovation for 90 years. The company's digital marketplace, Schneider FreightPower®, is revolutionizing the industry giving shippers access to an expanded, highly flexible capacity network and provides carriers with unmatched access to quality drop-and-hook freight – Always Delivering, Always Ahead. For more information about Schneider, visit or follow the company socially on Facebook, LinkedIn and X: @WeAreSchneider. View source version on Contacts For additional or story assistance, please contactKara Leiterman, Media Relations ManagerM 920-370-7188leitermank@ Sign in to access your portfolio
