Schneider National Inc is a provider of surface transportation and logistics solutions in North America. The Company offers truckload, intermodal, and logistics services to a diverse customer base throughout the continental United States, Canada, and Mexico. The company's segments include Truckload; Intermodal; Logistics and other. It generates maximum revenue from the Truckload segment.
Performance Overview
Schneider National Inc (SNDR, Financial) reported operating revenues of $1.32 billion for Q2 2024, a slight decrease from $1.35 billion in Q2 2023, missing the analyst estimate of $1.35 billion. Income from operations was $51.0 million, down from $103.8 million in the same period last year. The diluted earnings per share (EPS) stood at $0.20, surpassing the analyst estimate of $0.19.
Key Financial Achievements
Despite the revenue miss, Schneider National Inc (SNDR, Financial) managed to achieve a diluted EPS of $0.20, slightly above the analyst estimate of $0.19. The company also updated its full-year adjusted diluted EPS guidance to a range of $0.80 - $0.90, reflecting a cautious yet optimistic outlook for the remainder of the year.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Operating Revenues | $1,316.7 million | $1,346.5 million | (2%) |
| Income from Operations | $51.0 million | $103.8 million | (51%) |
| Net Income | $35.3 million | $77.5 million | (54%) |
| Diluted EPS | $0.20 | $0.43 | (53%) |
Segment Performance
Truckload: Revenues (excluding fuel surcharge) for the Truckload segment were $540.3 million, up by $7.6 million compared to Q2 2023. However, income from operations decreased by 53% to $30.7 million due to lower network pricing and volumes.
Intermodal: Revenues (excluding fuel surcharge) for the Intermodal segment were $253.1 million, a 3% decrease from Q2 2023. Income from operations also fell by 38% to $14.6 million.
Logistics: Revenues (excluding fuel surcharge) for the Logistics segment were $318.8 million, down by 7% compared to Q2 2023. Income from operations decreased by 13% to $11.2 million.
Cash Flow and Capitalization
As of June 30, 2024, Schneider National Inc (SNDR, Financial) had $265.0 million in total debt and finance lease obligations, down from $302.1 million as of December 31, 2023. Cash and cash equivalents stood at $103.2 million. The company’s cash provided by operating activities increased year-over-year, while net capital expenditures were lower due to reduced purchases of transportation equipment.
Commentary
"The second quarter showed continued progress toward market equilibrium as evidenced by moderate seasonality and a tightening spot market," said Mark Rourke, President and Chief Executive Officer of Schneider. "Enterprise results benefited from our continued emphasis on cost containment and asset efficiency, contributing to sequentially improved performance across our multimodal platform of Truckload, Intermodal, and Logistics."
Analysis
Schneider National Inc (SNDR, Financial) faced challenges in Q2 2024, including lower network pricing and volumes, which impacted its income from operations across all segments. However, the company’s ability to exceed EPS estimates and update its full-year guidance reflects its resilience and strategic focus on cost containment and asset efficiency. The transportation and logistics industry remains highly competitive, and Schneider's performance in the upcoming quarters will be crucial for maintaining investor confidence.
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Explore the complete 8-K earnings release (here) from Schneider National Inc for further details.
