Schneider National, Inc. SNDR reported disappointing third-quarter 2024 results, wherein earnings and revenues lagged the Zacks Consensus Estimate. Quarterly earnings per share (EPS) of 18 cents missed the Zacks Consensus Estimate of 23 cents and declined 10% from the year-ago quarter.

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Operating revenues of $1.31 billion missed the Zacks Consensus Estimate of $1.33 billion and fell 2.6% year over year. Revenues (excluding fuel surcharge) decreased 2% to $1.17 billion.

Income from operations (adjusted) moved down 7% from the prior-year quarter to $44.3 million. The adjusted operating ratio fell 20 basis points from the prior-year quarter to 96.2%.

Segmental Highlights

Truckload revenues (excluding fuel surcharge) for the third quarter of 2024 were $532.2 million, down 1% year over year due to lower Network volumes, partially offset by Dedicated growth.Truckload revenues per truck per week of $3,971 grew 2% year over year. Both Dedicated and Network revenues per truck per week increased year over year.

Truckload income from operations of $23.7 million decreased 3% year over year due to lower Network volumes, increased insurance expenses and reduced gains on sales of transportation equipment, offset by Dedicated growth. The Truckload operating ratio rose to 95.5% in the third quarter of 2024 from 95.4% in the year-ago quarter.

Intermodal revenues (excluding fuel surcharge) for the third quarter of 2024 were $264.7 million, up 1% year over year due to volume growth.

Intermodal income from operations for the third quarter of 2024 was $15.7 million, up 41% year over year. Apart from volume growth, internal cost actions, network optimization and improved dray productivity contributed to the increase in earnings. The Intermodal operating ratio fell to 94.1% from 95.8% in the year-ago quarter.

Logistics revenues (excluding fuel surcharge) of $313.7 million fell 4% year over year due to lower brokerage revenues per order.

Logistics income from operations of $7.6 million fell 11% year over year due to lower brokerage net revenues per order. The Logistics operating ratio rose to 97.6% from 97.4% in the year-ago quarter.

Liquidity & Cash Flow

Schneider exited the third quarter with cash and cash equivalents of $179 million compared with $103.2 million at the end of the prior quarter. The long-term debt was $124.7 million at the end of the reported quarter compared with $125.8 million at the end of the prior quarter.

SNDR generated $206.4 million of cash from operations in the third quarter. The free cash flow was $113.4 million in the reported quarter. Net capital expenditure was $93 million.

As of Sept. 30, 2024, SNDR repurchased 3.8 million Class B shares for $95.5 million under the program. As of Sept. 30, 2024, SNDR has returned $49.9 million as dividends to shareholders since the start of the year.

SNDR’s 2024 Outlook

Schneider anticipates 2024 adjusted earnings per share of 66-72 cents (prior view: 80-90 cents). The Zacks Consensus Estimate is pegged at 83 cents.

The company expects a net capital expenditure of $330 million (prior view: $300- $350 million). Our estimate is pegged at $340 million.

The full-year effective tax rate is expected to be 24%.

SNDR’s Zacks Rank

Currently, Schneider carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Transportation Companies

Delta Air Lines DAL reported third-quarter 2024 earnings (excluding 47 cents from non-recurring items) of $1.50 per share, which fell short of the Zacks Consensus Estimate of $1.56. Earnings decreased 26.11% on a year-over-year basis due to high labor costs.

DAL’s revenues of $15.68 billion surpassed the Zacks Consensus Estimate of $15.37 billion and increased 1.2% on a year-over-year basis, driven by strong air travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.59 billion, flat year over year.

J.B. Hunt Transport Services, Inc.’s JBHT third-quarter 2024 earnings of $1.49 per share outpaced the Zacks Consensus Estimate of $1.42 but declined 17.2% year over year.

JBHT’s total operating revenues of $3.07 billion surpassed the Zacks Consensus Estimate of $3.04 billion but fell 3% year over year. The downfall was caused by 5% and 6% decreases in gross revenue per load in Intermodal (JBI) and Truckload, respectively; declines in load volume of 10% and 6% in Integrated Capacity Solutions (ICS) and Dedicated Contract Services, respectively; and 6% fewer stops in Final Mile Services. These were partially offset by JBI load growth of 5%, which included growth in the transcontinental and eastern networks and a 3% increase in revenue per load in ICS. JBHT’s total operating revenues, excluding fuel surcharge revenues, decreased less than 1% from the year-ago quarter.

United Airlines Holdings, Inc. UAL posted third-quarter 2024 EPS (excluding 43 cents from non-recurring items) of $3.33, which surpassed the Zacks Consensus Estimate of $3.10. Earnings decreased 8.8% on a year-over-year basis.

UAL’s operating revenues of $14.84 billion beat the Zacks Consensus Estimate of $14.76 billion. The top line increased 2.5% year over year due to upbeat air travel demand. This was driven by a 1.6% rise in passenger revenues (accounting for 91.3% of the top line) to $13.56 billion. Almost 45,559 passengers traveled on UAL flights in the third quarter, up 2.7% year over year.

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